The uncertainty surrounding regulations in the US is identified as the primary obstacle preventing the $20 trillion financial advisory industry from delving deeper into the cryptocurrency market. Matt Hougan, the Chief Investment Officer at Bitwise, pointed out that this uncertainty has hindered financial advisors from expanding their cryptocurrency investments over the past five years.
Hougan emphasized the immense growth potential in the cryptocurrency market that could be realized once regulatory clarity is established in the US. He stressed that resolving legal uncertainties could open the floodgates for trillions of dollars managed by financial advisors to enter the cryptocurrency market. For the latest financial and business news, visit COINTURK FINANCE.
Drawing attention to the potential impact, the Chief Investment Officer of Bitwise compared it to the positive market effects observed when BlackRock, the world’s largest asset management company, entered the cryptocurrency market. He suggested that if Wall Street fully embraces the cryptocurrency market, it could trigger an even more significant shift in the market.
Despite the challenges, there are indications that the US is progressing towards clearer regulatory frameworks for cryptocurrencies. Hougan highlighted a significant development that occurred last month when Democrats collaborated to repeal Staff Accounting Bulletin 121. This move is viewed as a victory by many in the cryptocurrency market, especially following the House’s approval of the Financial Innovation and Technology Act for the 21st Century (FIT21). Moreover, the approval of spot Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) on May 23 is seen as another positive sign of regulatory progress.
Although progress is being made, the cryptocurrency market still encounters obstacles. President Joe Biden’s veto of the repeal of FIT21 signifies that significant challenges persist. Hougan views this veto as a minor setback, maintaining his optimism and acknowledging that the cryptocurrency market has advanced over the past decade despite regulatory challenges.
Hougan also noted that the cryptocurrency market is not fully prepared for the potential changes that regulatory clarity could bring. He mentioned that there is substantial “alpha” to be captured as the market remains largely untapped by those outside the crypto sphere. Hougan observed a lack of awareness and understanding about political developments related to cryptocurrencies, even among industry professionals at conferences.
Despite the current status quo where major policy changes in Washington have not occurred, Hougan remains hopeful about the future. He suggested that the tide may have turned, but the full impact of regulatory changes is yet to be seen. Hougan urged for patience, indicating that significant market movements are still in the pipeline.
For more news, follow us on Telegram, Facebook, Twitter, and Coinmarketcap. Please note that the information in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
