Politics, not ignorance, stalls crypto rules, Symbiotic COO says
Institutional adoption of crypto is advancing far slower than early lawyers anticipated despite clearer regulations, a dynamic Symbiotic's COO attributes to a lack of political will rather than technical ignorance.
Regulatory clarity has failed to trigger the rapid institutional adoption of digital assets that early industry lawyers predicted, according to Symbiotic Chief Operating Officer Jillian Friedman. Speaking at the Blockchain Futurist Conference in Toronto, Friedman noted that while traditional financial institutions have entered the crypto space, their pace of integration remains surprisingly slow.
A decade ago, when Friedman founded a law firm dedicated to the nascent crypto sector, the prevailing assumption was that regulatory uncertainty was the primary barrier keeping big banks and asset managers on the sidelines. There was also a belief that traditional firms were hesitant because blockchain posed a direct existential threat to their established business models.
"The thinking was that as soon as the regulation is clearer, then all of the big institutions, like financial institutions, are going to start building and operating with this new technology," she said. "We thought that the dam would be broken once the regulations were clear."
For investors tracking the institutionalization of crypto, this lag signals that regulatory frameworks alone are not enough to force legacy systems to integrate decentralized finance. Capital allocation decisions by major financial institutions are driven by immediate business utility, not merely the removal of legal ambiguities. The anticipated disruptive threat of blockchain to traditional finance has simply not materialized in the way many early proponents expected, removing the urgency for defensive adoption.
Friedman also pushed back against the persistent narrative that regulatory inertia stems from policymakers lacking the technical sophistication to understand digital assets. She pointed out that regulators across multiple jurisdictions have invested heavily to build internal expertise in blockchain and decentralized finance.
This becomes evident, she argued, when a change in government or agency leadership immediately results in a sharp pivot in crypto policy. Such rapid shifts prove the knowledge base exists within regulatory bodies, even if the mandate to act does not.
"It actually just demonstrates that it's not a lack of understanding if you have the right resources," Friedman said. The implication for market professionals is that future regulatory timelines will likely depend on election cycles and shifting political priorities rather than any educational curve for lawmakers.
Meanwhile, as the broader market waits for political winds to shift, firms like Symbiotic are pivoting away from speculative frameworks. The company is currently focused on generating sustainable yield tied to tangible business models, reflecting a broader maturation away from the industry's early hype.
