Hidden Road, a multi-asset prime broker and clearing firm, has obtained a license under the Markets in Crypto-Assets (MiCA) regulation in the Netherlands. The firm's CEO, Michael Higgins, believes MiCA will provide clarity and certainty in the digital asset space, allowing larger financial institutions to enter the market. He also discussed the delicate balance between innovation and regulation in the crypto space and emphasized the importance of not applying traditional financial regulations to emerging asset classes. Higgins expressed optimism about potential regulatory clarity in the United States under new leadership at the SEC and CFTC. He identified policy changes that could impact the industry, such as banks being allowed to enter the custody side of crypto and the potential end to the de-banking of crypto firms. The interview also touched on the challenges faced by institutional adoption, including the lack of audited financials from major industry players and the resistance of crypto exchanges to provide them. Higgins predicted that institutions conforming to more traditional requirements would be the winners. He also highlighted central bank participation as a potential game-changer for the industry and mentioned Hidden Road's plans to expand its traditional market offerings while focusing on regulated, institutional crypto trading. Finally, Higgins predicted that institutional participation in crypto would eventually surpass retail participation but acknowledged the dominance of retail participation at present.



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