A regulatory environment characterized by widespread uncertainty remains the single biggest challenge for all ecosystems. The blockchain and cryptocurrency industry is no different. 2021 was full of chaos concerning regulations within the cryptocurrency sphere. But can 2022 change this narrative?
Increased regulatory clarity
FTX crypto exchange founder Sam Bankman-Fried[1], or SBF, certainly is adopting a firm stance on this topic. While speaking at a Bloomberg interview[2], the exec opined that the crypto industry will enjoy an increased rate of institutional adoption as regulatory clarity improves around the world.
Despite the rocky end to 2021 for Bitcoin or even the crypto market in its entirety, SBF stated, “I’m optimistic about it (the price of Bitcoin[3]),” adding[4],
“Things that make me optimistic basically are (related to) more regulatory clarity[5] in the U.S and globally, -which I think could help a ton- and institutional adoption. And I think those are also related to each other.”
Needless to say, institutional adoption could boom, once the aforementioned goal is achieved. As covered before, many firms have portrayed the need[6] for a transparent regulation. Once ready, they (executives) or institutions would readily embrace digital assets. Therefore, a lot of it depends on exactly what happens on the regulatory front.
That said, these changes would take a while – maybe a year. SBF doesn’t expect anything evident in the next 3 to 6 months. “It’s going to be a long process, probably stretched out over a few years,” he added. Furthermore, “a lot of different governments announced that there will be regulatory frameworks coming out over the next year,” he noted.
Flooding the gates, let it flow
At present, different large firms including banking institutions such as JPM, Morgan
