How Does the Regulatory Landscape Affect the TAM for a Crypto Project?

The regulatory landscape significantly affects the TAM by imposing geographic restrictions, licensing requirements, and limitations on the type of investors or users a project can serve. For example, a project deemed a security may be restricted to accredited investors in certain jurisdictions, drastically reducing its TAM.

Uncertainty in regulation also adds a risk premium, which dampens the projected TAM. A clear, favorable regulatory path expands the TAM.