Oil and Water? Are Crypto Companies Compatible With Traditional Public Markets?

• Ripple CEO remains optimistic for 2026

• Panelists see negotiations before legislation is finalized and note potential for delays

• Regulatory changes have not been perfect but are steps in the right direction

The past year saw a raft of IPOs and exits as investors rushed to cash in on bets after regulatory headwinds turned into tailwinds, making market conditions more favorable than in previous years.

CfC St. Moritz participants are in a less bullish mood for 2026, with those expecting more IPOs and VC activity declining to around a third of survey respondents, down from 51% last year. At the same time, the number of those expecting consolidation has risen to 21% from 9% last year.

This shift might have had to do with the enthusiasm around the change in administration a year ago, reflecting a real sense that progress was at hand on the regulatory and legislative front, Lawin noted.

In contrast, Ripple’s Garlinghouse said he remains optimistic about 2026, given the institutional shift around crypto and blockchain adoption and comfort. He also said the prospect of the Clarity Act passing will further boost institutional adoption and market conditions, and he noted the impact of the change in the administration’s tone.

“From my point of view, it’s better than where we have been,” he said, noting the push in the right direction. “We feel like we've been able to play offense, and that's a shift. We spent four or five years playing defense with the United States government. Now we're playing offense with a couple of very consequential strategic acquisitions … and that has been a game changer.” 

Late last year, Ripple raised $500 million in funding, lifting its valuation to $40 billion. In Ripple’s case, a public offering was not prioritized, and it made strategic acquisitions outside crypto, such as the purchase of the second-largest treasury management platform called The Treasury.

Galaxy’s Ferraro also highlighted the effect of a friendlier U.S. administration, noting that projects and ventures in the space are attracting more capital than before.

“It's clear that new ideas are getting funded, and funding with, like, very increasing rapidity, particularly around global money and stablecoins,” he said, noting that this renewed access to capital puts crypto companies into a good position.

Ferraro added that challenges remain when acquiring crypto companies with issued tokens, citing the complexities of stakeholder alignment. The panel also touched on the evolving landscape of capital formation, focusing on the balance between public listings and tokens. There is also potential for introducing stablecoins and other crypto solutions to traditional financial institutions, they added.

The panel also discussed regulation and the likely outcomes from the Clarity Act, with Garlinghouse noting that it doesn’t have to be perfect to have a positive impact.