The Cryptocurrency Industry at a Crossroads: What Industry Leaders Really Think

The Fading Excitement Around Crypto IPOs

The cryptocurrency world is experiencing a significant shift in sentiment, and it’s not necessarily the bullish optimism that characterized previous years. According to insights gathered from the prestigious CfC St. Moritz conference in Switzerland—one of the industry’s most influential gatherings—the initial excitement surrounding cryptocurrency companies going public is beginning to cool down. The conference, which surveyed 242 key industry participants, revealed that investors and executives are becoming increasingly cautious about the future of crypto initial public offerings (IPOs). Despite 2025 being a record-breaking year with 11 crypto IPOs collectively raising an impressive $14.6 billion, the outlook for continued success in this area appears uncertain. The primary concern? Markets simply aren’t large enough yet to satisfy the appetites of traditional finance institutions that are increasingly entering the cryptocurrency space. This creates a paradox where the industry is simultaneously maturing and facing growing pains as it tries to accommodate both its innovative roots and the demands of conventional financial powerhouses.

The sentiment shift is particularly noteworthy when you consider the trajectory of the past few years. Cryptocurrency has moved from a fringe technology embraced by tech enthusiasts and libertarians to a legitimate asset class attracting billions in institutional investment. However, this transition hasn’t been without complications. The enthusiasm that once drove retail investors and early adopters to celebrate every new crypto company going public has been tempered by market realities. The industry insiders at St. Moritz pointed to what they see as “waning IPO intensity and rising consolidation risk,” suggesting that rather than continuing to see a proliferation of new public crypto companies, the market may instead witness a period where existing players merge or are acquired. This consolidation isn’t necessarily negative—it often indicates a maturing market—but it does represent a fundamental change in the industry’s growth trajectory and expectations for the near future.

The Liquidity Crisis: A Growing Concern

Perhaps the most pressing issue identified by conference participants is the challenge of liquidity—or rather, the lack of it. Among the various threats facing the cryptocurrency industry, liquidity shortages topped the list of concerns. But what does this actually mean for the average person trying to understand the crypto landscape? In simple terms, liquidity refers to how easily assets can be bought or sold without causing dramatic price changes. When markets have good liquidity, you can execute trades quickly at predictable prices. When liquidity dries up, even modest transactions can move prices significantly, creating volatility and making it difficult for both individual investors and large institutions to manage their positions effectively. This becomes especially problematic when traditional finance firms—accustomed to the deep, liquid markets of stocks and bonds—try to deploy substantial capital in cryptocurrency markets that simply can’t absorb large transactions without significant price impact.

The liquidity concern connects directly to the broader question of market maturity. Traditional financial institutions operate with different expectations and requirements than the crypto-native companies that built the industry. When pension funds, insurance companies, and major banks want to allocate even a small percentage of their enormous portfolios to cryptocurrency, they need assurance that they can enter and exit positions without disrupting the entire market. Currently, cryptocurrency markets—despite their growth—still don’t always provide that assurance. This creates a chicken-and-egg problem: traditional finance wants deeper liquidity before committing more capital, but markets need that capital to develop deeper liquidity. The industry finds itself in a transitional phase where it’s too large to ignore but perhaps not quite large enough to fully accommodate the institutional demand it has generated. This tension is reflected in the cautious optimism expressed by conference participants, who recognize both the progress made and the significant challenges that remain.

Traditional Finance Takes the Reins

One of the most striking findings from the CfC St. Moritz conference is the growing perception that traditional finance is effectively taking control of the cryptocurrency industry. Of the 242 respondents surveyed, 107 expressed the belief that “TradFi is taking over” crypto—a sentiment that has increased by more than 50% compared to the previous year. This represents a fundamental shift in how industry insiders view the power dynamics within cryptocurrency. What started as a decentralized, anti-establishment movement designed to operate outside traditional financial systems is increasingly being shaped by the very institutions it sought to circumvent or replace. Banks, asset managers, and other conventional financial players are no longer just dipping their toes in crypto waters; they’re diving in with substantial resources, regulatory expertise, and established client relationships that give them significant advantages over crypto-native competitors.

This transition evokes mixed feelings within the cryptocurrency community. On one hand, institutional adoption represents validation and brings stability, liquidity, and mainstream acceptance that can benefit everyone in the ecosystem. When major banks offer cryptocurrency services, it becomes easier for ordinary people to access these assets through familiar, trusted institutions. When traditional asset managers create crypto products, it opens the door for retirement accounts and other long-term investment vehicles to include digital assets. These developments represent the maturation that many industry advocates have long sought. On the other hand, there’s a genuine concern that this institutional takeover might dilute or eliminate the revolutionary aspects of cryptocurrency—the decentralization, the resistance to censorship, the financial inclusion for people outside traditional banking systems. The very features that made cryptocurrency appealing to its early adopters could be compromised as the industry becomes increasingly indistinguishable from the traditional financial system it was meant to transform.

Regulatory Winds Shifting in Unexpected Directions

While concerns about liquidity and institutional dominance create uncertainty, there’s genuinely good news on the regulatory front, at least in certain jurisdictions. The CfC St. Moritz report documented a dramatic shift in how industry participants view cryptocurrency regulation in the United States. In a remarkable turnaround, the U.S. jumped from dead last to second place in regulatory favorability rankings within just one year. This change reflects growing confidence that American regulators are finally developing a clearer, more coherent approach to cryptocurrency oversight. For years, the U.S. regulatory landscape was characterized by uncertainty and jurisdictional conflicts between different agencies, making it difficult for companies to operate with confidence. The improvement in perception suggests that this situation is changing, potentially making America a more attractive destination for cryptocurrency innovation and investment once again.

Meanwhile, the United Arab Emirates maintains its position as the top jurisdiction for cryptocurrency regulation, according to conference participants. The UAE has deliberately positioned itself as a crypto-friendly hub, creating clear regulatory frameworks designed to attract blockchain companies and cryptocurrency businesses. This regulatory clarity provides something that industry participants desperately need: predictability. When companies know what the rules are, they can build compliant businesses without constant fear of regulatory action. When investors understand the legal framework, they can assess risks more accurately and commit capital with greater confidence. The contrast between jurisdictions that embrace cryptocurrency with clear rules and those that maintain ambiguous or hostile regulatory postures has become a major factor in where companies locate, where innovation happens, and where capital flows. The improvement in U.S. regulatory sentiment, combined with the continued leadership of jurisdictions like the UAE, suggests a global regulatory environment that is gradually becoming more sophisticated and supportive, even as it tightens oversight.

From Hype to Infrastructure: The Industry Matures

Perhaps the most significant takeaway from the CfC St. Moritz conference is the fundamental shift in industry priorities that the survey revealed. Nicolo Stöhr, CEO of CfC St. Moritz, captured this transition perfectly when he observed that the responses “point to a clear shift in priorities, from hype to infrastructure, liquidity, and regulatory credibility.” This statement encapsulates the journey that cryptocurrency has taken from a speculative, excitement-driven sector to one increasingly focused on the practical foundations needed for long-term success. The early days of cryptocurrency were characterized by enthusiastic predictions, viral marketing, and a focus on potential rather than performance. Companies could generate enormous valuations based on whitepapers and promises rather than working products and sustainable business models. That era appears to be ending, replaced by a more sober assessment of what actually needs to be built for cryptocurrency to fulfill its potential.

This maturation process is healthy and necessary, but it also means that the industry may be less exciting in the short term. Building infrastructure isn’t glamorous. Improving liquidity mechanisms requires technical work that doesn’t generate headlines. Establishing regulatory credibility means compromise, compliance, and sometimes abandoning the revolutionary rhetoric that first attracted attention to the space. For people who entered cryptocurrency seeking quick profits from meteoric price increases, this shift toward fundamentals may be disappointing. However, for those interested in the long-term viability and societal impact of blockchain technology and digital assets, this focus on infrastructure represents exactly the kind of development needed. Stöhr’s observation that this represents “informed capital speaking” is particularly significant—it suggests that the people with the most knowledge and the most at stake are making decisions based on realistic assessments rather than hype and speculation.

What This Means for the Future of Cryptocurrency

As we step back and consider the complete picture painted by the CfC St. Moritz conference, we see an industry at a critical juncture. The cryptocurrency sector is no longer in its infancy, but it hasn’t yet achieved full maturity either. The cooling enthusiasm for IPOs, concerns about liquidity, the increasing dominance of traditional finance, improving regulatory environments, and the shift from hype to infrastructure all point to an industry in transition. This transitional period will likely be challenging, marked by consolidation, by some companies failing while others succeed, and by ongoing tension between the decentralized ideals that founded cryptocurrency and the centralized realities of institutional adoption. The next few years will probably see fewer dramatic success stories of unknown tokens reaching billion-dollar valuations overnight, and more grinding work of building systems that actually function at scale.

However, this transition also creates opportunities. As the industry focuses on infrastructure and credibility, it becomes more accessible to ordinary people who were previously intimidated by the technical complexity or concerned about regulatory uncertainty. As traditional finance institutions bring their resources and expertise to cryptocurrency, products will likely become more user-friendly and better integrated with existing financial services. As regulatory frameworks solidify, both companies and consumers can engage with cryptocurrency with greater confidence and legal protection. The cryptocurrency industry may be leaving behind some of the wild excitement that characterized its early years, but it’s potentially entering a phase where it can actually deliver on the promises that generated that excitement in the first place. The 242 industry leaders surveyed at St. Moritz represent informed perspectives on where billions of dollars will flow in the coming years, and their cautious but committed outlook suggests an industry that, despite challenges, continues to believe in its fundamental value proposition and long-term potential.