Regulation Alone Won't Close Crypto's Institutional Settlement Gap

Crypto regulation alone cannot solve the institutional settlement gap, according to Lynq CEO Jerald David. In an Aug. 19 White House meeting involving at least six crypto and prediction-market firms, David highlighted that institutions still face funding and collateral problems after completing trades.

US payment systems do not all operate on the same round-the-clock schedule as crypto markets. Tokenized cash projects are testing 24/7 settlement, margin, and collateral transfers.

Lynq CEO Jerald David said clearer rules would only remove one barrier facing financial institutions as digital assets, tokenized securities, and traditional markets become more closely connected. He emphasized that once an institution completes a trade, it must still fund the position, deliver cash, and move any required collateral.