Introduction
Scepticism is healthy in finance. It is what keeps risk managers employed. But there is a difference between informed scepticism and outdated assumptions that have not been revisited in three years.
The crypto landscape of 2026 is not the crypto landscape of 2018 — or even 2021. Regulatory frameworks have matured, institutional infrastructure has been built, and the asset class has survived multiple stress events that would have destroyed any purely speculative market.
Below are five beliefs that remain widespread on trading floors, in risk committees and around investment committee tables — along with the current evidence that challenges each one.
Myth 1: ”Crypto is just gambling — there is no underlying value”
Where this comes from: Early crypto markets were dominated by retail speculation, anonymous projects and outright fraud. The comparison to a casino was not entirely unfair in 2017.
The current reality: The ecosystem has bifurcated sharply. At one end, speculative tokens still exist and carry the risks you would expect. At the other end, you have assets with quantifiable utility: Bitcoin as a scarce, globally liquid store of value with a fixed supply schedule; Ethereum as the settlement layer for a financial system that processes hundreds of billions of dollars in transactions annually; stablecoins that clear more daily volume than Visa.
BlackRock’s BUIDL fund — a tokenised money market fund on Ethereum — passed $500 million in assets within weeks of launch. That is not gambling. That is institutional capital seeking yield through a new settlement rail.
The question is not whether all crypto has value. The question is the same one you ask in any market: which instruments have durable, measurable utility — and which do not?
Myth 2: ”There is no regulation — it is the Wild West”
Where this comes from: The regulatory vacuum of 2017–2021 was real. Enforcement was inconsistent, jurisdiction was unclear, and bad actors exploited the gaps.
The current reality: The regulatory picture has changed materially. In the US, the OCC has granted banking charters to digital asset firms. The SEC has approved spot Bitcoin and Ethereum ETFs. MiCA (Markets in Crypto-Assets) regulation is now in force across the EU, creating a harmonised framework covering issuers, exchanges and stablecoin providers.
In the UK, FCA registration is required for crypto asset businesses. Switzerland’s FINMA has regulated digital asset banks since 2019. Singapore’s MAS has issued payment service licences to major exchanges.
Is the framework perfect? No. Is it comparable to equities regulation? Not yet. But the ”no regulation” argument no longer holds. Compliance departments at major banks now have dedicated crypto desks. That does not happen in an unregulated environment.
| Year | Jurisdiction | Development |
|---|---|---|
| 2023 | EU | MiCA regulation enters into force |
| 2024 | US | SEC approves spot Bitcoin ETFs |
| 2024 | US | SEC approves spot Ethereum ETFs |
| 2025 | US | OCC confirms national banks may custody crypto assets |
| 2025 | UK | FCA full crypto asset framework in effect |
| 2026 | Global | FSB international crypto standards adopted by G20 members |
Source: SEC, OCC, FCA, European Commission, FSB.
Myth 3: ”All coins are scams — you cannot distinguish signal from noise”
Where this comes from: The 2021 bull market produced thousands of tokens with zero utility, celebrity meme coins and outright rug-pulls. The damage to credibility was significant.
The current reality: The signal-to-noise problem is real — but it is not unique to crypto. The same challenge exists in small-cap equities, private credit and early-stage venture. The answer in those markets is not to avoid the asset class entirely. It is to apply rigorous selection criteria.
For institutional purposes, the investable universe is narrow and well-defined: Bitcoin, Ethereum, and a small number of liquid, large-cap assets with established utility. Spot ETFs now provide regulated exposure to BTC and ETH without requiring any interaction with the broader token market.
The noise is real. But professionals who know how to evaluate risk in complex markets are precisely the people equipped to separate it from the signal.
Myth 4: ”There is no real yield — it is all circular token economics”
Where this comes from: The DeFi yield farming boom of 2020–2021 produced headline APYs of 100%+ that were largely funded by token inflation. When token prices fell, the yields collapsed. The criticism was justified at the time.
The current reality: Sustainable, real-economy yield now exists on-chain in several forms:
- Stablecoin lending on AAVE and Compound generates yields backed by actual collateral and borrower demand, not token subsidies. Current rates have tracked closely to money market rates.
- Tokenised US Treasuries (BlackRock BUIDL, Franklin Templeton BENJI, Ondo Finance) offer on-chain access to T-bill yields — real yield backed by US government securities.
- Perpetual funding rates on decentralised exchanges create arbitrage opportunities comparable to basis trading in traditional futures markets.
The circular token economics argument applies to speculative DeFi. It does not apply to the growing segment of on-chain finance that is directly connected to real-world cash flows.
Myth 5: ”Institutions cannot use crypto at the scale we operate”
Where this comes from: In 2019, this was largely true. Custody was fragmented, prime brokerage did not exist, and regulatory uncertainty made compliance sign-off nearly impossible.
The current reality: The infrastructure built between 2020 and 2026 is specifically designed for institutional scale:
- Prime brokerage: Coinbase Prime, FalconX, Hidden Road and others offer credit, execution, custody and reporting in a single relationship — comparable to a traditional prime broker.
- Custody: Regulated qualified custodians hold digital assets under the same legal frameworks as traditional securities custody.
- Derivatives: CME Bitcoin and Ethereum futures provide regulated hedging tools with familiar margining and settlement.
- Reporting: Portfolio management systems including Addepar and Allvue now natively support digital asset reporting for institutional clients.
JPMorgan, Goldman Sachs, Citi and Société Générale all have active digital asset operations. The infrastructure question has largely been answered. The remaining questions are strategic and risk-appetite related — which are exactly the conversations worth having.
The Productive Sceptic’s Approach
Healthy scepticism asks: ”What is the evidence?” It does not ask: ”How do I avoid having to reconsider?” The professionals who have engaged seriously with digital assets over the past three years have generally come to the same conclusion: the risks are real and manageable, and ignoring the asset class entirely is itself a risk — to returns, to relevance, and to the ability to serve clients whose needs are evolving.
The goal is not to become a crypto enthusiast. It is to be a well-informed professional who can make a considered decision with current information.
Key Takeaways
- Value exists in crypto — but is concentrated in a small number of assets with clear, measurable utility
- Regulatory frameworks are now in place across major jurisdictions and continue to develop
- The investable universe for institutions is narrow, well-defined and accessible via regulated vehicles
- Real yield exists on-chain, tied to T-bills, lending markets and arbitrage — not just token inflation
- Institutional infrastructure for custody, prime brokerage and reporting is fully operational in 2026
Next: Discover how stablecoins are already being used by corporate treasury teams and why they represent the lowest-risk entry point into digital assets.