'Zero Chance It's Not Happening': Fidelity CEO Says Traditional Finance Will Evolve With Blockchain

Core Viewpoint - The financial industry is expected to evolve with the integration of blockchain technology, as stated by Fidelity CEO Abigail Johnson, who believes that this transition is inevitable [1]. Group 1: Industry Evolution - Johnson emphasized that larger financial institutions are eager to upgrade their infrastructure but face challenges due to the interconnectedness of the industry [2]. - Smaller players in the financial sector may lack the resources to participate in significant upgrades, which could hinder overall progress [3]. - Competition and regulatory pressures are anticipated to drive Wall Street towards adopting blockchain technology, suggesting that these forces are already influencing the market [3]. Group 2: Regulatory Developments - Vanguard has shifted its stance on cryptocurrencies, now allowing trading of cryptocurrency exchange-traded funds on its platform, driven by client demand and improving regulatory conditions [4]. - The Commodity Futures Trading Commission has adopted a more favorable view of blockchain technology, approving the trading of spot cryptocurrency products on U.S.-regulated exchanges and launching a pilot program for using digital assets as collateral in derivatives markets [5]. - The Securities and Exchange Commission has initiated "Project Crypto" to integrate U.S. markets on-chain and is considering an "innovation exemption" to support cryptocurrency startups [6]. - The GENIUS Act, signed by President Trump, provides guidelines for U.S. stablecoin issuers, and lawmakers are working on legislation to clarify the classification of digital assets as commodities or securities [7].