It’s a valid concern, and the tension between regulation and innovation has always been a pivotal issue in emerging technologies. What we’re seeing globally is less about outright rejection of crypto and more about governments trying to catch up to a rapidly evolving space. In the U.S., the SEC’s actions reflect a desire for clearer investor protections and market stability, though the lack of tailored frameworks has led to enforcement-first approaches.
Meanwhile, other jurisdictions are experimenting with more defined regulatory environments — places like the EU with MiCA, or Hong Kong reopening its crypto markets under new guidelines. This divergence could create innovation hubs in more permissive regions while slowing development in others.
Ultimately, regulation doesn’t have to strangle innovation, but unclear, inconsistent, or overly restrictive policies risk pushing talent and capital to friendlier markets. The outcome depends on whether regulators aim to work with the industry or merely contain it.