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Modularization refers to the existence of numerous players in a decentralized value chain, each using digital technology to provide a specialized service that meets the needs of other value-chain players or end-customers. In financial services, modularization represents an alternative to the vertically integrated market structure long dominated by large banks and other institutions.

The pace of the SEC’s crypto crackdown ramped up last week with its highest profile actions against crypto trading platforms since the crypto market turmoil at the end of 2022.  The SEC’s actions place crypto trading platforms and the market as a whole on extremely uncertain regulatory footing in the US, and the frustration from the industry is palpable.