Europe's High Regulatory Bar Could Spark New Crypto Industry M&A Wave, CoinDesk

Partner Steven Lightstone was quoted by CoinDesk in an article examining how Europe’s evolving crypto regulatory frameworks, including the European Union’s Markets in Crypto-Assets regime and the UK Financial Conduct Authority’s (FCA’s) proposed crypto framework, could drive consolidation across the digital asset industry.

Steven discussed how the FCA’s approach incorporates crypto firms into the existing financial services regulatory framework, requiring them to meet the same standards as traditional financial institutions. He noted that while the FCA is seeking to promote competition, its high regulatory standards, including the Client Assets Sourcebook (CASS) requirements, may encourage smaller crypto firms to partner with or be acquired by established financial institutions. “The CASS requirements are very onerous,” he said. “That could encourage those newcomers to merge [with], be acquired by, a traditional firm that’s already subject to CASS and has those controls in place.”

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