The EU recently released a report exploring the potential of permissionless blockchain in traditional finance (TradFi). The report argues that permissionless blockchains should at least be seen as an option for traditional finance and financial market infrastructure, but they should be adopted with caution.
The report suggests that such blockchains can be more neutral than private blockchains, thus encouraging competition. The unrestricted access provided by public blockchains stands in stark contrast to the increasingly isolated permissioned blockchains. While public blockchains have drawbacks, there are many well-known solutions that can address their challenges, especially by adding permissions at the smart contract level.

The report states that permissionless blockchains can provide an interoperability layer for L2 blockchains (including regulated blockchains). When smart contracts are located on a single chain, they can be combined into more complex functions.
At the same time, the report also mentioned the drawbacks of public blockchains, such as scalability, privacy, finality, and governance. It delves into each topic, as well as the controversial MEV issue.