Trillions in State Capital Sit on Sidelines as U.S. Dithers on Crypto Rules

Wall Street’s institutional billions—and sovereign wealth trillions—are coiled like a spring. All they need? Regulatory greenlights from a bureaucracy that moves at the speed of dial-up.

The great crypto paradox: Even as Bitcoin ETFs suck in $30B and stablecoins become payment rails for entire nations, U.S. policymakers still treat digital assets like a Wild West sideshow. Meanwhile, Singapore’s MAS and the EU’s MiCA framework are eating America’s lunch.

Want to know why your state pension fund isn’t yielding more than 2%? Because the suits won’t touch crypto until D.C. stops playing regulatory whack-a-mole. The irony? The ’unregulated’ crypto markets have better real-time surveillance than the NYSE.

Wake-up call: When Wyoming’s blockchain laws look more progressive than SEC guidance, maybe it’s time to admit the ’innovators vs regulators’ fight is just kabuki theater for VCs to score cheap political points.

“Once regulations are in place,” he suggested, “we could see multi-billion-dollar buys from funds managing tens of trillions.” These funds, built from oil surpluses and trade reserves, hold vast influence—Norway and China alone manage over $3 trillion between them.

Scaramucci believes the tipping point could arrive if digital assets are officially recognized as financial infrastructure. Only then, he says, will Bitcoin be seen not just as a speculative asset, but as part of the future of finance.

His view aligns with that of ARK Invest’s Cathie Wood, who recently said the odds of bitcoin reaching $1 million by 2030 have increased, thanks to growing institutional confidence in the asset class.