Crypto regulation is one of those topics that is a difficult discussion but needs to be talked about as well. While many think that an industry as open and wide as crypto needs breathing space, others believe that regulation is essential. In fact, a lot of institutional investors think that regulation by the SEC will help boost crypto prices. The reason for this is straightforward. Regulation means more adoption by the big companies and even retailers, and more adoption means demand and price rise.
How can the SEC help in boosting crypto prices?
At this point, the biggest problem in the crypto markets is volatility. It is so insane that even the strongest hodlers can get a hard time just getting through the ups and downs. While it is a problem for everyone but for institutions, such volatility brings a lot of complexities. One needs to understand that not every CEO is like Micahel Saylor or Elon Musk, who is willing to bet on the fundamental superiority of Bitcoin with the company’s money.
This is the reason apart from some investments here and there; no other large company has come forward to put their money in Bitcoin. There is also the security factor as we hear a lot of illicit activities going on in this industry. Regulation by the SEC will be a good way to bring some stability to the market and give more confidence to big investors to take a controlled bet on Bitcoin. And if Bitcoin increases in value, so will most of the crypto market.
Institutional investors agree
A survey by Nickel Digital Asset Management shows that institutional investors share the same idea. It had interviews and data from 50 wealth managers and 50 institutional investors from the US, UAE, Germany, and France. The AUM under these investors and managers is well over $100 billion. In their interviews, the top two concerning factors are security and volatility, with 79% and 67% votes, respectively. Almost half the investors also included market cap and regulatory environment in their reasons for not investing in Bitcoin. There were also a bunch who called out the carbon footprint of Bitcoin as the reason for staying away from it.
Coming to what that think about regulation by the SEC, 73% think it will help in boosting crypto prices. At the same time, 32% believe that it will have a “very” positive effect.
What do you think will be the impact of regulation by the SEC on crypto prices? And do you think it will hamper innovation in this industry? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.