Thomas Mattimore, CEO of ABC Labs ( Reserve ), says regulatory clarity is coming in the US.

“We are seeing progress and regulatory clarity that we haven't seen since I started paying attention to crypto 10 years ago,” he told TheStreet Roundtable’s Jackson Hinkle.

Regulation has been a big concern for traditional financial institutions. Multiple lawsuits have been filed by the SEC in recent years, scaring off people who might otherwise want to jump into the space.

In recent weeks, however, many of these suits have been dropped, giving comfort to those already in the space and confidence to others to finally jump in.

"This week we saw the SEC cases against Uniswap and all the exchanges, Kraken, Coinbase, as well as OpenSea get dropped,” Mattimore said, “I'm not a legal expert, but the analysis that I've seen is showing that that is actually going to be a very powerful precedent that gets set for DeFi systems and free permissionless financial systems.”

SEC commissioner Hester Peirce has also created a crypto task force to address a number of legal issues for crypto and Web3, including determining its status as a security, custody solutions for investment advisors, and much more.

“The task force that commissioner Hester Pierce at the SEC is leading right now has been fantastic. They're doing a ton of outreach, talking to all the players, gathering feedback, actually hosting weekly updates. The progress that they're making, what they're planning to do. Everyone in the industry is really excited about it,” he exclaimed.

SAB 121

Another big moment for the space this year was the axing of Staff Accounting Bulletin (SAB) 121, which restricted the ways in which banks could hold crypto on their balance sheet.

“That was a rule that didn't make sense,” Mattimore explained, “That was struck down and all of a sudden we're seeing Citadel, Schwab, Citi and others all announce that they're moving into crypto custody, crypto trading, crypto market making, and it's because of this regulatory clarity.”

TradFi jumps into crypto

Citadel recently announced that it was interested in becoming a liquidity provider for crypto, and Bank of America’s CEO has also teased a stablecoin launch .

They join the growing list of traditional financial institutions such as Robinhood, PayPal, Blackrock, and many others who have begun offering crypto products to it's users.

President Trump announced a crypto roundtable that will occur in Washington D.C. on Friday, March 7 to discuss regulatory issues as well as a 'strategic crypto reserve.' He has previously stated that he wants the United States to be the crypto capital of the world, exciting investors around the world.