Traditional financial institutions are taking over the crypto sector, benefiting from institutional investors, ETFs, governments, and stablecoin issuers. Billions of dollars flow into Bitcoin ETFs, with big banks expected to follow suit once regulatory clarity is obtained. This shift is causing tension with cypherpunks advocating for full decentralization.

Governments are pushing for crypto regulation to align with traditional financial systems, aiming to attract technology companies and talent. This includes a focus on AML and KYC requirements, already prevalent in Asia-Pacific and Europe. The move towards consumer surveillance contradicts DeFi’s promise of a decentralized, censorship-resistant financial system.

Read more at Cointelegraph: Institutions and Big Banks Dominating Crypto Narratives, While Cypherpunk Ethos Retreats