Wall Street Firms Build Crypto Compliance Infrastructure Amid Congressional Stagnation

Without a comprehensive federal framework, such as the stalled CLARITY Act, financial firms are standardizing compliance and infrastructure themselves. Following an SEC innovation exemption allowing tokenized U.S.-listed stocks to trade onchain, firms are navigating a patchwork of federal and state laws. Aravind Raju, CFO of Uphold, said compliance is now a major department as firms build tailored solutions for each state's requirements, though he expects these resources to be redirected as rules align. Instead of shared infrastructure, many institutions launched private, closed networks, leading to separation of functions like custody and trading, as Lewis Tuff, CEO of Twilight, noted that every firm is rebuilding similar connections.