The volatility is certainly a problem. I assume the volatility is due to the ongoing price discovery.
Fed/Treas/FDIC regulation is key to crypto's next step at this crux. Sounds like liquidity requirements, at a minimum, are on the horizon. This type of regulation actually helps crypto grow in value. The market is changing (and is demanding more accountability from crypto).
https://www.nasdaq.com/articles/how-crypto-regulation-pulled-off-the-rebranding-of-the-century-2021-10-26
After the 2018 ICO boom in all of its fraud-rich glory, the phrase “Wild West” was thrown around hundreds of articles about cryptocurrencies. It’s a catchy metaphor crypto opponents leverage to play up the lawlessness angle, painting a picture of bandits waiting behind every corner and not a single sheriff in sight. Fans interpret the phrase differently, dreaming of a new frontier where modern pioneers can build the infrastructure of the future.
But the market has changed quite a bit since 2018. As more and more institutional money floods into the crypto ecosystem, the big players are getting their skin and cash in the game. And money has a tendency to change people’s minds.
For a crypto sector that has grown into an entire industry, regulation and compliance have evolved from boogeyman to key selling point. The reason for that is quite simple: The first question a crypto company hears when approaching a prospective partner among major financial institutions is about its AML. The first hurdle the relationship hits is always in the institution’s Risk and Compliance department.
So now, suddenly, every crypto startup claims (and I am not commenting on whether it’s true or not) to be regulation-ready, AML compliant, and a good citizen seeking to play by the book. They better be, given the amount of scrutiny they are or will be in for from both the regulators and prospective partners, even before the first meetings—even their Twitter feeds and Facebook posts may be studied under a microscope. The best thing they can do is make sure they can quickly present solid evidence proving their business processes and practices are indeed thorough and legitimate.
TLDR: The wild west days are over, which bolsters the value of crypto. That may piss off those who traffic in weapons, narcotics, blackmail, humans, . . ., but fuck 'em. This isn't 2018 anymore. Success will come from regulation, ironically.