After years of flying under the radar, cryptocurrency has clearly caught the attention of politicians and regulators. Presidential candidates are now taking public stances on crypto policies and courting the votes of crypto enthusiasts. Vice President Kamala Harris has emphasized the need to maintain the U.S.’s position as a leader in blockchain technology. Presidential candidate Donald Trump recently handed out “crypto burger s” bought using bitcoin to show his support. Former independent candidate Robert Kennedy Jr. has long been an outspoken proponent, recently revealing a purchase of 21 bitcoin and declaring his view that bitcoin is “the way to save the dollar.”
These events are part of a broader shift in the perception and adoption of digital currencies, according to Neil Bergquist, CEO of crypto exchange Coinme. In a recent interview , Bergquist shared insights on the current state of the crypto industry, emerging trends, and the challenges faced by companies building crypto infrastructure. His perspective offers a window into the complex interplay between regulation, technology, and mainstream adoption in the fast-changing world of digital assets.
The Shift Toward Mainstream Adoption
The approval of bitcoin cryptocurrency exchange-traded funds by the Securities and Exchange C ommission earlier this year was another watershed moment for the industry as it continues to gain more mainstream adoption.
“A bitcoin ETF received some of the largest capital inflows out of any ETF ever created,” explains Bergquist. “That was a big turning of the tide moment. Everyone had talked about this institutional adoption coming. Well, here it is.”
This institutional embrace of bitcoin through traditional financial products has coincided with an increase in practical use cases for cryptocurrencies. Bergquist highlights the growing trend of using crypto for payments, citing advantages such as reduced chargeback risk and lower processing fees compared to traditional payment systems.
“We’re seeing further evolution of crypto use cases entering various areas for mainstream adoption,” he says. “We’re seeing more and more use cases around crypto payments where crypto is being used as both a store of value and as a medium of exchange to buy goods and services.”
Self-Custody and Crypto Infrastructure
Another significant trend identified by Bergquist is the increasing popularity of self-custody solutions. In the wake of high-profile exchange collapses like FTX, more users are opting to hold their own private keys through services like MetaMask and Trust Wallet.
“We’re still seeing a shift to self-custody where people hold their own keys, as those platforms become more secure. People are able to have a user experience like trading on a centralized exchange like Coinbase, but leveraging the benefits of having your own USB drive or private key that you are in control of,” Bergquist says.
A preference for self-custody fits within the ethos of emphasizing financial freedom and privacy within the crypto community.
For Bergquist and Coinme, the important thing is that these trends suggest a momentum toward more options, interoperability, and useability for crypto enthusiasts. With this in mind, the company is aiming to provide a “crypto infrastructure” that facilitates cash-to-crypto transactions through channels such as bitcoin ATMs and crypto-enabled financial services from traditional firms that use Coinme’s API.
“Coinme’s perspective is we’re a platform that provides crypto infrastructure,” says Bergquist. “That infrastructure is the ability to create an account and conduct KYC, which is know your customer, so that Coinme and our partners can be in compliance with various state and federal regulations. Then, we want to also enable users to to use a debit card or cash to buy or sell digital currencies, and we can custody digital currencies or send them to a customer’s wallet of their choice. I think having that choice is really important. For us to really enable people, we need to create that open financial system where people can move their digital currency into the custodian of their choice.”
The Regulatory Environment
The regulatory environment for crypto remains complex and often ambiguous. Bergquist points out the frustration felt by many in the industry due to unclear guidance from regulatory bodies like the SEC.
“That is sad as an American to have that be our regulatory environment for supporting innovation. It’s just frustrating,” he says.
Despite these challenges, Bergquist sees positive developments on the horizon. He notes that there’s growing bipartisan support for crypto-related legislation in Congress and a shift in tone from some political figures.
“We’re at a point now where regardless of who wins in November, it’ll continue to be positive and will be better than the current environment of ambiguity and headwinds from the SEC,” he predicts.
Bergquist envisions a future where crypto is seamlessly integrated into everyday financial management. He described a scenario where users could hold their assets in various digital currencies and convert them to fiat at the point of purchase.
“Imagine if you had your investment portfolio: stocks and bonds, and gold, and bitcoin, and you could just have that be your checking account essentially,” he proposes. “Then whenever you bought something, it would just convert it into the dollar to pay the merchant instead of having to sit on dollars, which can lose value over time. When that happens, your purchasing power goes down.”
Stablecoins
Stablecoins — tokens pegged to the value of fiat currencies — are playing an increasingly important role in the development of crypto infrastructure. Bergquist highlights as an example of how blockchain technology can be leveraged to create more efficient payment systems.
“USDC is basically a dollar on a blockchain. It’s dollars, but you can move it around like an email,” Bergquist says. “You might not care about blockchain or the fact that it’s USDC, you just care about dollars, but you care about being able to move those dollars around peer to peer, friends, and family, the way you move information.”
This focus on user experience and practical applications is critical to driving adoption beyond the current base of crypto enthusiasts.
Balancing Innovation and Regulation
Yet, the tension between innovation and regulation remains a central challenge for the crypto industry. Recent actions by U.S. law enforcement agencies against developers of privacy-focused crypto tools have raised concerns about the future of financial privacy and self-custody.
Sen. Cynthia Lummis has voiced concern over the Department of Justice’s approach to noncustodial software, arguing that it threatens fundamental property rights. This debate is bringing to the fore the demand for clear, balanced regulation that protects consumers without stifling innovation.
Bergquist sees the current regulatory environment as a significant, but not insurmountable, hurdle for the industry. “Right now, the innovation rests with the private sector and the private sector is creating these use cases,” he notes.
The coming years will be crucial in determining whether crypto can fulfill its promise of greater financial freedom and efficiency. But the hope among Bergquist and other industry vets is that with continued development of user-friendly infrastructure and thoughtful regulation, the integration of digital assets and everyday financial tools can continue to make steady progress.
Gianluigi Cuccureddu is co-founder of Damarque, helping you to improve your commercial performance through better engagement with your employees, customers and strategic business partners.
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