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Crypto Compliance: From Buzzword to Boardroom Imperative

By Michael Ross ·

In a previous post I wrote about how exhausting the hype around AI can be. Crypto feels similar - overhyped at times - but, like AI, it has reached the stage where real, lasting changes are underway.

Why now?

The U.S. regulatory landscape has shifted, unlocking opportunities for firms ready to act. Institutional participation has accelerated dramatically this year, and momentum is only building. Recent examples:

  • BlackRock expanded its ETFs to include major broker-dealers.
  • Citadel increased its capital commitment to market-making in crypto and digital assets.
  • Gemini popped in its Nasdaq debut, raising $425M at $28 a share and surging ~32% on day one—valuing the exchange between $3.3B–$4.4B.
  • Coinbase was added to the S&P 500, cementing crypto’s place in mainstream equity markets.

And just last week, two more examples underscored the competitive dynamics and accelerating pace of change:

  • Reuters: U.S. Bancorp revives institutional bitcoin custody service — signaling renewed confidence in regulated bitcoin custody and ETF support.
  • Wired: The Loophole Turning Stablecoins Into a Trillion-Dollar Fight — highlighting how the GENIUS Act is reshaping stablecoin markets, with potential systemic risks for banks.

5 Steps to Ensure Crypto Compliance

  1. Build a Foundation Host an expert session on distributed ledgers, blockchains, and crypto assets. Make it mandatory for compliance and legal teams.
  2. Educate Beyond Compliance Traders and staff may use crypto without grasping its regulatory nuances. For example, they may invest in a derivative of a crypto – which is a security and subject to SEC policies. Establish regular certification programs to ensure all employees understand current policies.
  3. Align With Your Business Risks Review policies through the lens of your firm’s strategy. Identify retail and institutional trends that may impact your business and prepare protections in advance.
  4. Audit Current Controls Most firms lack adequate monitoring tools. Assess disclosure systems for digital asset holdings and fill the gaps. (StarCompliance can help with best-in-class solution that’s already deployed at dozens of peers – both traditional finance as well as crypto-native firms.)
  5. Plan for Change Crypto regulation will continue to evolve. Network with industry peers and map potential scenarios. You will then be well-positioned to guide leadership and they can respond quickly and decisively. And speed of execution is imperative in the current environment.

For compliance leaders, the message is clear: crypto is no longer speculative. It’s strategic.

For additional articles on Crypto & Compliance please visit: https://www.starcompliance.com/blog/?_categories=crypto

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