In brief
- Citadel and other TradFi giants are signaling they may sue to block crypto’s new regulatory wins, setting up a major 2026 showdown.
- Wall Street is increasingly split: some firms see crypto as a threat, while others are embracing blockchain.
- The emerging conflict is expected to peak during SEC and CFTC rulemaking next year.
This year vaulted the crypto industry to unprecedented heights of political influence. But could that new position of power pose unexpected consequences—and attract new enemies—in 2026?
At the start of every new year, Decrypt consults its handy Crypto Crystal Ball to divine what trends are likely to shape the coming months—and what those developments could mean for you.
First, we investigated whether the crypto industry will be able to pass its treasured market structure bill this coming year. Today, we look into a related topic: whether Wall Street is poised to become the industry’s newest villain in 2026.
In early December, Wall Street giant Citadel Securities fired a warning shot across crypto’s bow in a scathing letter to the SEC. The market maker, founded by billionaire Ken Griffin, urged the SEC to reconsider granting exemptive relief to huge swathes of the crypto industry, and warned such actions could “override key investor protections.” It also argued much DeFi activity should be monitored by the securities regulator.
Amanda Tuminelli, executive director of the DeFi Education Fund, is fairly certain that traditional finance giants are gearing up to sue over crypto’s new regulatory victories—even if the SEC is now firmly on crypto’s side.
“I do think we’re going back to court whether we want to or not,” Tuminelli said at a recent crypto policy event. “I’m not just speculating. [The letter] makes it abundantly clear that Citadel is getting ready to sue.”
Other traditional finance entities, including the Nasdaq stock exchange, have made similar appeals to the SEC—to abandon plans to grant the crypto industry key exemptions.
One crypto policy executive told Decrypt their industry has already faced off against traditional finance players this year, and won.
“I think it is already a significant political force,” the executive said of an anti-crypto push from traditional finance. “It’s been a factor, and it remains a factor now.”
The banking lobby, for instance, vocally opposed provisions in the GENIUS Act regarding stablecoin rewards—but the bill passed Congress this summer anyway. Banking groups are still pushing to have the language retroactively adjusted, but the Trump administration so far appears unmoved on the issue.
What’s more, Wall Street is no monolith on the subject of crypto. In fact, a growing number of key players are embracing the technology as a means to cut costs and potentially skirt regulations.
“I think over the course of the next year, the perspectives of the Fidelitys of the world among TradFi players will start to be a little bit louder, and balance out those on the other side saying we’re an existential threat,” another crypto policy leader told Decrypt.
The policy leader predicted crypto’s tensions with traditional finance will likely come to a head during rulemaking processes at the SEC and CFTC in 2026.
“It could be that it peters out in the sense that TradFi actually recognizes the opportunity here,” the policy leader said. But the friction could also spiral into “a full head-on clash,” they added.
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