Key Takeaways
- Institutional Momentum: Regulatory progress and institutional investment are creating a strong foundation for crypto growth in 2026.
- Privacy & Security Focus: Privacy protocols like Zcash are surging, while recent high-profile hacks underscore the critical need for robust security infrastructure.
- Infrastructure Evolution: The transition of TradFi systems to blockchain protocols like Ethereum and Solana promises massive efficiency gains and cost savings.
- Policy Education is Key: A major hurdle remains educating policymakers to enable sensible regulations that foster innovation.
The cryptocurrency sector is entering the new year propelled by regulatory tailwinds and deepening institutional investor interest. This combination is setting the stage for a powerful start to 2026, according to insights shared at Cointelegraph's recent LONGITUDE event.
Building on a Foundation of Progress
Industry leaders, including Anthony Scaramucci and Kristin Smith, expressed an optimistic outlook for 2026, citing a year of significant positive change in 2025, particularly within the United States. The event featured deep dives into Solana's expansion, the rising demand for privacy-focused blockchain solutions, and critical lessons from the year's security incidents.
“There’s been a tremendous amount of progress in 2025, an unprecedented amount,” said Kristin Smith, President of the Solana Policy Institute.
Scaramucci emphasized that a primary challenge is educating policymakers to help the traditional financial system adopt innovative blockchain protocols. He highlighted the staggering cost of current systems, noting that global transaction verification exceeds $4 trillion annually. A shift to leading blockchain networks like Ethereum and Solana—which dominate in real-world asset (RWA) tokenization—could unlock unparalleled efficiency.
“Kristin has got to go into those rooms, and she’s got to explain to these people why this regulation needs to get passed so that we can retool the financial system and make the system less expensive and more seamless,” Scaramucci stated.
Smith echoed this, pointing out that while issuing digital assets on a blockchain is technically straightforward, nonsensical trading regulations remain a major barrier to full adoption.
The Surge of Privacy and the Imperative of Security
StarkWare and Zcash co-founder Eli Ben-Sasson explored the growing fascination with privacy protocols in late 2025. He differentiated between the extreme privacy offered by protocols like Zcash and the more nuanced privacy demands from enterprises.
“Enterprises come in, and they are going to want a different kind of privacy... They’re going to want privacy where they, as enterprises, and their customers are shielded away from other customers and from their competitors,” Ben-Sasson explained.
Security was another central theme, especially following high-profile incidents like the $1.6 billion Bybit hack in 2025. Phemex CEO Federico Variola warned that social engineering attacks and unverified access points remain severe threats to users.
“It’s difficult in crypto because sometimes you need to participate in an airdrop... Nevertheless, you should be aware that you’re always exposing yourself to significant risk,” Variola cautioned.
Ian Rodgers, Ledger's Chief Experience Officer, stressed the responsibility of service providers to critically assess and minimize risks for their users, acknowledging that risk can never be eliminated entirely.
A Bullish Path Forward
Scaramucci concluded with a bullish perspective, highlighting the intent of financial giants like BlackRock and JPMorgan to tokenize assets on-chain as a sign of the sector's maturation and vast potential. Cointelegraph's LONGITUDE events will continue in 2026, with stops planned in global hubs including New York, Dubai, and Singapore.
