The bankruptcy of FTX and its affiliated trading firm, Alameda Research, is a major blow to the cryptocurrency industry’s credibility, but there are silver linings, Bank of America (BAC) said in a research report Friday.

“An increased urgency for regulation may enable greater institutional engagement, and a shift in focus (and capital) from speculative trading to projects with real-world functionality and companies with roadmaps to profitability may accelerate industry maturity,” analysts Alkesh Shah and Andrew Moss wrote.

Regulatory frameworks for the crypto industry are critical for mainstream adoption, the report said, and a coordinated global effort is required to discourage regulatory arbitrage and to safeguard consumers and investors.

(By Will Canny)