Tom Farley, CEO of the crypto exchange Bullish and former President of the New York Stock Exchange (NYSE), predicts a brutal period of mergers and acquisitions is imminent for the digital asset sector. In an interview with CNBC, Farley stated that the recent market downturn is exposing weak business models, forcing a long-overdue industry shakeout.
The market correction, with Bitcoin falling roughly 45% from its October 2025 all-time high of $126,100 to around $69,405 at the time of the interview, is washing away "false optimism," according to Farley. He argues this downturn should have begun one to two years earlier, but companies clung to inflated valuations from the 2020-2021 bull market era. Farley cited examples of firms with just $10 million in stagnant revenue still expecting $200 million buyouts. "That dream is going to be over," he declared.
Farley, drawing parallels to the consolidation he witnessed in the traditional exchange business, believes the crypto industry is moving from a speculative era to one focused on institutional, on-chain finance. He stated that surviving companies must evolve from being mere "products" or "features" into "institutional, compliant, and respected" businesses capable of handling high trading volumes and meeting stringent regulatory demands.
The consolidation process will not be painless, likely involving internal reorganizations and job losses as larger entities acquire smaller ones. However, Farley sees this as a necessary filter, leading to a more mature industry that resembles traditional finance, dominated by a handful of large, regulated infrastructure providers. He pointed to interest from traditional firms like the NYSE in blockchain-based stock trading as evidence of the underlying technology's staying power, even if individual projects fail.
