Wall Street may be the new villain of the cryptocurrency industry in 2026

Source: PortaldoBitcoin Original Title: Wall Street Market Could Be the New Villain of the Cryptocurrency Industry This Year; Understand Original Link: The year 2025 propelled the cryptocurrency industry to unprecedented levels of political influence. But could this new position of power bring unexpected consequences — and attract new enemies — this year?

What trends are likely to shape the coming months — and what could these developments mean for you? First, we investigate whether the cryptocurrency sector will be able to pass its long-awaited market structure bill in 2026.

Today, we analyze a related topic: if Wall Street is about to become the new villain of the sector in 2026.

In early December, Wall Street giant Citadel Securities issued a warning to the cryptocurrency market in a strong letter to the SEC.

The brokerage, founded by billionaire Ken Griffin, urged the SEC to reconsider granting exemptions to large sectors of the cryptocurrency industry and warned that such actions could “overlap with important investor protections.”

The company also argued that much of the DeFi (Decentralized Finance) activity should be monitored by the securities regulator.

Amanda Tuminelli, executive director of the DeFi Education Fund, is quite certain that traditional finance giants are preparing to sue the cryptocurrency sector due to new regulatory victories — even though the SEC is now firmly on the side of cryptocurrencies.

“I think we’ll be back in court, whether we like it or not,” Tuminelli said at a recent cryptocurrency policy event. “I’m not just speculating. [The letter] makes it clear that Citadel is preparing to sue.”

Appeals to Wall Street

Other traditional Wall Street financial entities, including Nasdaq, made similar appeals to the SEC — urging it to abandon plans to grant significant exemptions to the cryptocurrency sector.

A cryptocurrency policy executive said that the sector has already faced traditional financial market players this year and has won.

“I think it’s already a significant political force,” the executive said about the anti-cryptocurrency pressure from traditional finance. “It has been a factor, and it continues to be one now.”

The banking lobby, for example, strongly opposed the provisions of the GENIUS Act related to stablecoin rewards — but the bill was still passed by Congress. Banking groups are still pushing for the language to be retroactively adjusted, but the Trump administration, so far, seems unwavering on the issue.

Moreover, Wall Street is not a homogeneous group when it comes to cryptocurrencies. In fact, an increasing number of major participants are adopting the technology as a way to cut costs and potentially circumvent regulations.

“I believe that over the next year, the prospects of companies like Fidelity among traditional financial market participants will start to gain more strength and balance the opinions of those who say we are an existential threat,” said another crypto policy leader.

The political leader predicted that tensions between cryptocurrencies and traditional finance are likely to peak during regulatory processes at the SEC and CFTC this year.

“It may dissipate in the sense that the traditional financial sector recognizes the opportunity here,” said the political leader. But friction could also turn into “a direct confrontation,” he added.