February 22, 2024

Despite The SEC’s Aggressiveness, Professional Investors Favor Crypto

Bloomberg MLIV Pulse released the survey findings on October 24. According to the results, professional investors are 56% more likely than average to invest in cryptocurrencies. 

This is true notwithstanding a rise in legal activity involving digital assets. The findings also indicate that 44% of investors are likely to hold off.

There Is a Rising Interest in Cryptocurrency Among Retail Investors

A rate of 65% of retail investors has shown interest in becoming involved in the sector. So, despite tighter controls, this is happening. 

This was also supported by research conducted between October 17 and 21. The survey included a total of 564 respondents.

For many years, some market participants have had certain beliefs regarding cryptocurrencies. These opinions include the idea that the likelihood of legal action and regulation is harmful to the sector. 

But all of this is taking place amid ongoing market instability. Additionally, it has been characterized by well-known bankruptcy cases.

Prolonged Litigation Brought by the SEC

The Securities and Exchange Commission (SEC) has started investigating the collapse of Celsius Network and Three Arrows Capital. SEC asserts that this decision to investigate these two lending platforms is in response to growing investor safety concerns. 

The commission is also investigating Yuga Labs. The non-fungible tokens in the Bored Ape collection were created by Yuga Labs (NFTs).

President of international markets of TIAA Bank, Chris Gaffney, favors regulation. If individuals are professional investors, he said, they need a regulated investment choice. 

He continued by saying that if cryptocurrency is more tightly regulated, it will allow for the participation of more professional investors.

Institutional investors significantly influenced the last crypto bull run but are presently avoiding the market. The absence of regulations has been cited as the cause of this. 

On the other hand, there is a consensus still in effect. According to the reasoning, enacting open legislation will attract institutional investors who are now staying away. 

Finbold’s survey also produced several recommendations. According to the report, high-net-worth investors are still considering cryptocurrencies. Despite the market’s ongoing concerns, this is the case.

Standards For Cryptography in The United States

Additionally, the US government is currently drafting many pieces of crypto law. President Joe Biden had signed an executive order that led to this. The White House crypto framework was made public due to the EO.

The SEC has been under fire for criticizing cryptocurrencies but has also been accused of hindering sector growth. 

Finbold noted in July that supporters of cryptocurrencies had started an online petition. In the petition, Gary Gensler’s resignation as SEC chairman is demanded.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous post MakerDAO Votes To Deposit $1.6 Billion USDC On Coinbase For 1.5% Yield
Next post Robinhood Seeks Regulatory Agents As It Debuts Self-custody Wallets