Crypto Crystal Ball 2026: Is Wall Street the Industry’s Next Villain?

This year, the crypto industry has reached unprecedented heights of political influence. But could this new position of power have unexpected consequences?– and attract new enemies –in 2026?

At the beginning of every new year, Declutter consults the handy Crypto Crystal Ball to guess which trends are likely to shape the coming months—and what these developments can mean for you.

First, we examined whether the crypto industry will be able to pass its cherished market structure law in the coming year. Today we explore 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 damning warning shot across crypto’s bow letter to the SEC. The market maker, founded by billionaire Ken Griffin, urged the SEC to reconsider its award exemption exemption to large parts of the crypto industry, warning that such actions could “eliminate key investor protections.” It also argued that many DeFi activities should be monitored by the securities regulator.

Amanda Tuminelli, executive director of the DeFi Education Fund, is pretty sure that traditional financial giants are gearing up to file a lawsuit over the new wins in crypto regulation — even though the SEC is now firmly on crypto’s side.

“I really think we’re going back to court whether we like it or not,” Tuminelli said during a recent crypto policy event. “I’m not just speculating. [The letter] makes it abundantly clear that Citadel is preparing to file a lawsuit.”

Other traditional financial entities, including the Nasdaq stock exchange, have made a similar call for the SEC – to abandon plans to grant the crypto industry major exemptions.

A crypto policy manager said this Declutter their sector has already faced off against traditional financial players this year and won.

“I think it is already a major political force,” the executive said of an anti-crypto push from the traditional financial world. “It has been a factor, and it continues to be a factor now.”

For example, the banking lobby vocally opposed provisions in the GENIUS Act regarding stablecoin rewards– but the bill was passed by Congress this summer. Banking groups are still pushing for the language to be retroactive, but the Trump administration appears to be giving up so far unmoved about the issue.

Moreover, Wall Street is not a monolith in the field of crypto. In fact, a growing number of key players are embracing the technology as a means to cut costs and potentially avoid regulations.

“I think that over the course of next year the prospects of the fidelity of the world among TradFi players will get a little louder, balancing those on the other side by saying we are an existential threat,” another crypto policy leader shared. Declutter.

The policy leader predicted that tensions between crypto and traditional finance will likely come to a head during the regulatory processes at the SEC and CFTC in 2026.

“It could be that it fizzles out in the sense that TradFi actually sees the opportunity here,” said the policy leader. But the friction could also result in a “full frontal collision,” she added.