Crypto Can’t Afford To Wait For Perfect Regulation

**The Time for Iterative Progress in Crypto Is Now**
*Opinion by Kevin de Patoul, Co-founder and CEO of Keyrock*

There is a certain déjà vu in crypto right now. Real-world assets (RWAs), tokenized funds, and on-chain treasuries are buzzwords we’ve been discussing for years. Back in 2022, when hype far outpaced real adoption, a BCG report projected that the total size of tokenized assets could reach $16 trillion by 2030. Today, in 2025, the market cap stands at around $50 billion.

This time, however, it feels slightly different. And it’s not just because giants like BlackRock are launching tokenized money market funds or Circle’s USDC is becoming the de facto settlement layer for Treasury bonds on-chain. It’s because the narrative has finally collided with reality: real businesses, real cash flows, and real compliance.

Yet, despite all this momentum, one thing still drags the industry to the brink of regression—the pursuit of an idealized regulatory framework.

### Progress Requires Iteration, Not Perfection

The future of finance is digital. Every asset class, from bonds to real estate, will eventually exist in a tokenized form. And when it does, it has to offer much more than a mere digital replica. Digitization means faster, cheaper, and more accessible markets. None of that matters if institutions can’t allocate capital at scale.

Institutions are, and always will be, allergic to uncertainty. The problem isn’t that regulators haven’t acted; it’s that the current approach prioritizes theoretical completeness over practical clarity.

Universal frameworks, seamless cross-border rules, and global harmonization sound good on paper. In practice, however, they have led to paralysis.

People often say traditional finance (TradFi) has a global regime, but it’s unclear if that’s strictly true. Basel III in Europe is not the same as banking rules in the US. Crypto isn’t uniquely splintered; global finance, in general, is siloed.

Waiting for an elusive, one-size-fits-all solution will only delay progress.

### Navigating a Fragmented Regulatory Landscape

This fragmentation is evident across major markets. In the US, tokenized equities are clearly defined as securities. In Europe, MiCA provides a welcome overarching playbook, but its limits are already visible—especially in areas like decentralized finance (DeFi). Singapore permits tokenized bonds for institutional investors while restricting open retail participation.

These examples aren’t regulatory failures. Rather, they demonstrate that regulation evolves. The challenge is not regulatory ambiguity but the absence of robust market infrastructure and strong demand. The rails are in place but remain underused.

Markets can function with imperfect rules. They cannot work if everyone stays on the sidelines.

### The Cost of Waiting

Institutions don’t hesitate because they dislike blockchain technology. They hesitate because no one wants to explain to a board or regulator why they backed assets that might later be deemed in violation of existing laws.

Banks’ transition costs lie in dismantling and rebuilding legacy systems—a costly overhaul difficult to justify for what they still consider a niche market.

In some regions, investors can commit capital and services with confidence. In others, even minor licensing gaps force players to sit on the sidelines.

Uncertainty doesn’t just slow adoption. It drives up the cost of legal opinions, forces firms to ring-fence entire business units, and cripples cross-border liquidity. Every jurisdiction becomes its own legal minefield.

This is more than a technology problem. It’s a deep-rooted, systemic issue of regulatory clarity.

### Clarity Unlocks Capital, Even if It’s Messy

The truth is, crypto doesn’t need perfect global regulation to thrive. Traditional capital markets have operated for decades under frameworks that are far from uniform.

What matters is a baseline level of clarity and consistency—enough for firms to assess and price risk.

Take shadow banking: a $60 trillion system that exists alongside, not outside, formal regulation. It’s complex and imperfect but functional.

This isn’t about deregulation. It’s about distinguishing between necessary safeguards and unattainable idealism.

Fraud prevention and investor protection matter—but they don’t require flawless global frameworks.

For regulators, the path forward is to prioritize iterative clarity: publishing rules even if they evolve over time. Progress today is better than perfection tomorrow.

For financial institutions, the greater risk lies in falling behind. Tokenization will not wait for certainty—agile players are already building in jurisdictions with workable guidance.

For crypto builders, the challenge is to stop waiting for external validation. Instead, they must operate within existing legal frameworks and actively push for incremental improvements.

### Tokenization Solves Real Problems—If We Let It

The value of tokenization goes beyond novelty for crypto insiders. It addresses real problems: settlement times measured in days instead of seconds; capital tied up in reconciliations; and asset classes locked behind jurisdictional walls.

Stablecoins have already shown the blueprint: when regulators provide clarity—even imperfect clarity—adoption explodes.

Tokenized securities can follow suit—but only if we stop treating regulation as a binary choice between perfect and broken.

Some critics may see this as settling for mediocrity. However, iterative progress is how financial systems mature.

### From Theory to Reality

Crypto has moved past speculative memes. We’re now dealing with cash-positive businesses moving real money on-chain.

If there was ever a moment to embrace iterative progress, it is now.

Companies willing to operate in a clear, albeit evolving, regulatory environment will define the next chapter of finance. Progress equals momentum, not perfection.

If the industry is forced to wait on the sidelines for comprehensive frameworks, the digital asset revolution will remain frustratingly theoretical.

—

*This article is for general information purposes and is not intended to be, and should not be taken as, legal or investment advice. The views, thoughts, and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.*
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