“If interest rates stay elevated, the dollar gains strength, or investors retreat from risky ventures, a favorable election outcome won’t magically alleviate these pressures,” he clarified.
Kirkley pointed out that the trend of institutional adoption is increasingly rooted in practical economic factors, such as reduced costs for cross-border transactions, quicker settlements, and the transition of financial assets onto blockchain platforms.
Although he anticipates fluctuations surrounding election results, he believes that gaining regulatory clarity will play a more vital role in whether institutional interest transforms into substantial adoption by 2027.
Regarding congressional oversight, Kirkley mentioned that shifts in committee leadership could impact the intensity with which lawmakers scrutinize the SEC and CFTC.
“But the larger concern is whether lawmakers can finally establish a sensible boundary around their responsibilities. Banks intending to settle transactions with stablecoins or transfer assets on-chain must understand the regulatory landscape, their responsibilities, and whether those regulations will remain applicable in five years,” he emphasized.
The leader of GSN, an organization that builds blockchain-based financial infrastructure for banks and other regulated entities, stated that crypto firms are seeking the same consistency in regulations that is found in traditional financial sectors—not preferential treatment.
Kirkley believes that Congress will make another significant attempt to advance crypto market structure legislation in 2027, although he cautioned that significant disagreements remain on which digital assets fall under securities regulations, the jurisdiction of the CFTC, and the oversight of platforms dealing with both traditional and tokenized assets.
He advises lawmakers to focus on establishing clear guidelines for custody, finality of settlements, and ownership, even if it means pursuing more narrowly focused legislation.
“A functional framework that institutions can actually implement is far more valuable than a broad piece of legislation that fails to become law,” Kirkley remarked.