The crypto conversation is shifting from moonshots to regulation. At ETHDenver last week, founders and investors spent as much time discussing Washington policy changes as they did blockchain technology. Tether and stablecoins are facing fresh scrutiny, Stripe is re-entering the space, and the industry is sorting winners from flameouts. The hype cycle that defined 2021 and 2022 is over – what’s emerging is a more measured, policy-aware market where survival depends on navigating regulatory reality as much as building technology.
The mood at ETHDenver last week marked a clear departure from crypto’s wilder days. Gone were the promises of overnight fortunes and revolutionary decentralization. Instead, founders huddled in conference rooms discussing regulatory compliance strategies and sustainable business models. The shift reflects a broader reckoning across the crypto industry as the post-hype reality sets in.
Tether, the world’s largest stablecoin issuer, is facing renewed scrutiny from Washington regulators. The attention comes as lawmakers and financial watchdogs reassess how digital currencies should be overseen, particularly those pegged to the dollar. Stablecoins have emerged as a critical flashpoint because they bridge traditional finance and crypto markets, making them both systemically important and potentially risky. The regulatory uncertainty is forcing projects to either adapt quickly or face potential obsolescence.
But it’s not all defensive positioning. Stripe, the payments giant that previously retreated from crypto during the market downturn, is reportedly re-entering the conversation. The company’s renewed interest signals that traditional fintech players see opportunity in the more mature, regulated crypto landscape that’s taking shape. When a company as established as Stripe moves back into crypto, it suggests the worst of the volatility may be behind the market.
The startup landscape tells a more complicated story. Venture capital that flowed freely during the bull run has tightened considerably, forcing crypto startups to demonstrate actual utility rather than just narrative appeal. Some companies are finding real traction by solving specific problems – payment infrastructure, compliance tools, enterprise blockchain solutions. Others are quietly shutting down or pivoting away from crypto entirely as their runway evaporates.
