Crypto’s Future: Embrace Imperfect Regulation Now

Kevin de Patoul, co-founder and CEO of Keyrock, argues that the crypto industry’s path forward requires embracing imperfect regulation rather than holding out for flawless frameworks. This pragmatic stance is essential to avoid stalling adoption, innovation, and the tokenization of real-world assets (RWAs). The sentiment reflects a growing recognition within the sector that waiting for ideal regulatory conditions could hinder progress and delay the integration of blockchain technology into mainstream finance.

The current environment, as noted by de Patoul, evokes a sense of déjà vu, with buzzwords like RWAs, tokenized funds, and onchain treasuries resurfacing. However, this time, the landscape feels different due to concrete advancements and participation from established financial giants. The involvement of firms like BlackRock and Circle signals a maturation of the market, moving beyond speculative hype toward practical implementation and growth.

In 2022, a report by BCG projected that the total size of tokenized assets could reach $16 trillion by 2030, highlighting the immense potential of this emerging sector. However, as of 2025, the current market capitalization stands at just $50 billion, underscoring the significant gap between aspiration and reality. This disparity emphasizes the urgency of adopting workable regulatory frameworks to bridge the divide and unlock the projected growth.

The slow progress in tokenization adoption can be attributed, in part, to regulatory uncertainty and the industry’s hesitation to engage with imperfect rules. By embracing existing frameworks, the crypto sector can accelerate the tokenization of real assets, fostering innovation and driving market expansion. The pragmatic approach advocated by leaders like de Patoul is crucial for transforming lofty projections into tangible outcomes.

Major players in traditional finance are already leading the charge toward integration. BlackRock, for instance, has launched tokenized money market funds, demonstrating a commitment to leveraging blockchain technology for asset management. Similarly, Circle’s USDC has become the de facto settlement layer for Treasury bonds onchain, facilitating efficient and transparent transactions. These developments indicate a shift from theoretical discussions to actionable initiatives.

The involvement of established entities like BlackRock and Circle not only validates the potential of tokenized assets but also provides a foundation for broader adoption. Their participation helps build trust and credibility, encouraging other market participants to explore and invest in tokenization. This collaborative effort between crypto innovators and traditional finance giants is essential for realizing the sector’s full potential.

The integration of crypto and traditional finance through tokenization promises to revolutionize asset management, settlement processes, and investment accessibility. By adopting imperfect regulatory frameworks, the industry can overcome existing barriers and foster a more inclusive and efficient financial ecosystem. This approach aligns with the positive sentiment expressed by de Patoul and other industry leaders, who see immense value in pragmatic progress.

As the market evolves, the focus must remain on collaboration, innovation, and regulatory engagement. The journey toward a $16 trillion tokenized asset market by 2030 requires concerted efforts from all stakeholders, including regulators, investors, and technology providers. By embracing imperfection and prioritizing action over idealism, the crypto industry can unlock unprecedented opportunities for growth and transformation.