The recent tumult in crypto markets, and ensuing regulatory crackdowns on the sector’s major players, have dented the appeal of their underlying blockchain technology to traditional finance operators.
The collapse of FTX in November 2022 capped off a year of crisis in crypto markets in which price falls and scandals left a permanent black mark on the sector. And this year has been defined by flashpoints between regulators and the blockchain industry. In June, the Securities and Exchange Commission followed the lead of the Commodity Futures Trading Commission in levelling charges against Binance, the world’s largest crypto exchange, for alleged trading violations. Publicly listed rival Coinbase is also facing similar charges from the SEC.
At the height of enthusiasm for crypto in 2021, blockchain technology commanded mainstream attention, with exchanges securing celebrity endorsements, striking high-profile sponsorship deals, and several running multimillion dollar Super Bowl ads — including the now defunct FTX.
The sector also drew sizeable investments from venture capital…