Regulators Help Shape Crypto's Capitalism 2.0 Vision

The concept of cryptocurrency as an evolution of capitalism is gaining traction among industry leaders and regulators, with implications for the future of global finance. Mert Mumtaz, CEO of Helius, a provider of remote procedure call (RPC) node services, argues that crypto is not merely a digital version of the internet (often labeled as Web 3.0), but rather a reimagining of capitalism itself—aptly described as “Capitalism 2.0.” This evolution, according to Mumtaz, enhances traditional capitalist mechanisms by introducing decentralization, transparency, and frictionless capital flows, fundamentally reshaping the financial landscape.

Central to this transformation is the idea that blockchain technology enhances the core principles of capitalism: the free flow of information, immutable property rights, aligned incentives, and the removal of middlemen. By decentralizing information and making it publicly verifiable, crypto ensures that markets remain transparent and resistant to manipulation. Similarly, the use of smart contracts on platforms like Ethereum and Solana enforces property rights with code, reducing disputes over ownership and increasing trust in digital transactions.

Mumtaz also highlights crypto’s ability to enable global, near-instant capital movements, bypassing traditional financial gatekeepers like banks. This not only reduces transaction costs but also expands financial inclusion, especially in regions where access to traditional banking is limited. Furthermore, the open nature of crypto ecosystems fosters increased competition and innovation, lowering entry barriers and allowing for a more diverse set of market participants.

Regulatory bodies are beginning to recognize the implications of this shift. In 2025, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) took a significant step by signaling the potential for 24/7 capital markets in the United States. These markets, if implemented, would move away from the traditional system that closes on weekends and holidays, marking a major departure from the legacy financial infrastructure. The agencies outlined proposals for always-on markets, perpetual futures contracts, and event prediction markets, all aimed at modernizing the existing financial system and integrating digital assets into the broader financial framework.

The integration of digital assets into traditional financial systems is already taking shape. Tokenization of real-world assets, including stocks, real estate, and even art, is gaining momentum. In July 2024, the Solana Foundation unveiled a roadmap to develop internet capital markets by 2027, emphasizing the tokenization of assets on blockchain. This aligns with the broader trend of traditional financial firms adopting tokenized products, as seen with Robinhood’s introduction of tokenized stock trading for European users.

However, the transition is not without challenges. Mert’s vision of a decentralized, transparent financial system faces hurdles in maintaining true decentralization, particularly with concerns around Sybil attacks and the potential for centralized control through governance mechanisms. Despite these challenges, the trend toward decentralization is viewed as a critical step in fixing the flaws of traditional capitalism.

Meme tokens, often seen as the epitome of decentralized innovation, exemplify the principles of Capitalism 2.0. These tokens are typically created by communities, not corporations, and thrive on open participation and virality. The transparency of blockchain ensures that transactions are visible and verifiable, reducing opportunities for fraud and increasing trust among participants. Yet, the rapid evolution of this space also brings risks, such as the potential for market manipulation and the need for robust governance structures to maintain decentralization.

The regulatory landscape is evolving in tandem with these technological advancements. The U.S. has moved away from a litigious approach to regulation toward a more structured and business-friendly model. The end of Gary Gensler’s tenure at the SEC and the appointment of Paul Atkins signal a shift toward a more balanced regulatory environment that emphasizes clarity and innovation. This change is expected to encourage institutional participation and investment in the crypto space, as seen in the growing inflow of capital into exchange-traded products (ETPs) and the increasing number of compliant crypto startups securing funding.

Global regulatory developments are also shaping the future of crypto. The European Union’s Markets in Crypto Assets (MiCA) regulation aims to establish a comprehensive framework for digital assets, while Asia continues to adopt a more flexible, sandbox-like approach. These diverse regulatory environments reflect the complexity of integrating crypto into traditional financial systems and highlight the need for international coordination to address cross-border challenges.

In summary, the crypto industry is redefining the principles of capitalism through decentralization, transparency, and innovation. As regulators and institutions adapt to this new paradigm, the potential for a more inclusive and efficient global financial system becomes increasingly tangible. The path ahead, however, requires addressing key challenges such as maintaining decentralization, ensuring regulatory clarity, and fostering trust among market participants.