As the digital asset industry enters a new phase of institutional interest, U.S.-based firms are reassessing how they engage with crypto markets, according to Armani Ferrante, CEO of Backpack Exchange.
He believes that a long-standing appetite from traditional finance is finally meeting the conditions necessary for meaningful involvement. “There’s been this unsatiated desire from traditional finance to get into crypto for years,” he told Traders Magazine.
While that appetite has been growing over several years, recent regulatory shifts, clearer policy conversations, and increasing cultural normalization of digital assets have created the conditions for more serious institutional movement.
Ferrante noted that the change in tone from U.S. policymakers has helped ease historical reluctance. The perception of crypto as an outlier is evolving into an understanding of it as a legitimate component of the broader capital markets infrastructure. “We’re seeing a cultural and political unlock,” Ferrante said.
The regulatory environment in the U.S. remains fragmented, but Ferrante points to growing momentum behind the scenes. While legislative frameworks are not yet settled, he argues their formation is becoming increasingly inevitable. “You can see a ton of movement behind the scenes,” he said, citing policy efforts from industry leaders including advocacy groups tied to Coinbase, Solana, and Ethereum. At the same time, the actions of institutions building products for blockchain rails indicate that internal compliance teams and legal strategists are anticipating clearer guidance in the near future.
Clarity, Ferrante emphasized, is a foundational requirement for innovation. In its absence, developers and entrepreneurs are forced to navigate ambiguity, with significant opportunity costs. “The problem with the lack of clarity is that you don’t know the rules. So what game are you playing?” he asked.
For Ferrante, regulatory clarity is not only about enabling centralized exchanges to operate confidently — it is about unlocking innovation throughout the crypto ecosystem.
He believes that many regulators and policymakers still misunderstand how modern exchanges operate. While the technology is complex, he argues the risks can be clearly defined and evaluated. Ferrante encourages regulators to move away from headline classifications — such as “centralized” versus “decentralized” — and focus instead on first-principles analysis of risk. From his perspective, the key areas of concern should be custody risk, margin and liquidation mechanisms, and market integrity. Different platforms pose different types of risk depending on their design, and regulators must understand these distinctions to develop effective, targeted oversight, he said.
Ferrante also argues that the traditional centralized/decentralized dichotomy no longer reflects the reality of the market. “Many so-called decentralized exchanges have centralized components in practice, whether through upgrade authorities, multi-signature wallets, or the presence of centralized sequencers,” he noted.
Likewise, modern centralized exchanges are increasingly adopting blockchain-native features such as on-chain proofs of reserve and transparent auditability. He views the space as moving toward a hybrid architecture that incorporates the best features of both models. Understanding these nuances, he said, is critical to formulating regulations that both protect users and support innovation.
When asked what it means to be a “fully compliant” exchange in the U.S. today, Ferrante said. “Compliance simply means following the rules.”
“The complexity lies in determining which rules are applicable to a given system. If a product or service carries a specific type of financial or operational risk, then it should be subject to the corresponding regulatory standards,” he explained.
If existing rules do not neatly apply, the industry should work with regulators to develop frameworks that reflect the unique properties of blockchain-based infrastructure. Compliance, in his view, is not static — it is a collaborative process between innovators and regulators to ensure fair and safe participation in the market.
Looking ahead, Ferrante sees both continuity and change in crypto market structure. He points to the rise of stablecoins and tokenized financial products as a transformative force in global capital markets. “This moment is not a temporary trend. It is a structural evolution — one that regulators, institutions, and builders alike must work together to navigate,” he concluded.
