Fortune Magazine: Cryptocurrency Community's Court Victory Could Be Completely Taken Over by Wall Street

Crypto startup advisor Damien Scott discussed a series of victories for cryptocurrencies in court and their potential impact on Wall Street and the cryptocurrency community in an article published in Fortune. "While the Web3 community celebrates, it may ultimately be Wall Street that takes it all," Scott said.

Securing Victory from the SEC, What's Next?

Damien Scott stated that Grayscale recently defeated the Securities and Exchange Commission (SEC) in a U.S. court, marking the most notable legal victory in the industry to date.

Recap: Why the Court Found SEC's Rejection of Grayscale's Spot ETF Application Unreasonable

As the court ruled that the SEC must reexamine Grayscale's application for a Bitcoin ETF, led by applicants such as Blackrock, confidence in ETF approval is high. The outcome of Grayscale's lawsuit undoubtedly serves as a significant boost for Wall Street participants.

As Web3 enthusiasts celebrate the victory, this may also be a crossroads determining how users "get on-chain" and whether the decentralized values and benefits cherished by the community will still exist in the process of greater public access.

Retail Adoption, Provided by Wall Street?

Damien Scott believes that if in the future all these "cryptocurrency funds" issued and managed by Wall Street pass, and retail investors primarily access cryptocurrencies through these funds rather than through wallets that users can control directly for trading and usage, it would be a great pity. This would stifle the innovative business models that technology can achieve.

Wall Street Must Explore New Models, Otherwise Blockchain Will Lag Behind

Damien Scott also mentioned the cases of Ripple and Uniswap, which are temporary victories. If significant compliance issues are not addressed in a more comprehensive and systematic manner, these victories may be in vain. While Wall Street can bring liquidity, expertise, and legitimacy to cryptocurrencies, entrepreneurs must be allowed to experiment with business models unlocked by technology.

After reading the XRP court documents, a detailed explanation of why XRP has not escaped securities risks in the crypto sphere

The author expressed concerns about the future, fearing that if mainstream cryptocurrencies only mean Wall Street providing integrated financial products for cryptocurrencies and pushing blockchain to the backend, opportunities will be missed. He hopes that the actions of future entrepreneurs, courts, and policymakers can address this issue.