The US Securities and Exchange Commission (SEC) and related agencies have recently intensified their efforts to crack down on crypto projects. Thus, strict regulatory action has the potential to influence the preferences of investors when engaging in cryptocurrencies.
Along these lines, 56% of professional investors are likely to venture into cryptocurrency as legal action increases in the digital asset space, while 44% are likely to stay put. Bloomberg MLIV Pulse The survey was published on October 24.
Elsewhere, 65% of private investors are also open to participation in the sector amid a growing crackdown, according to the survey conducted between October 17 and October 21 and targeting 564 respondents.
For years, some cryptocurrency markets viewed legal action and regulation as a downward trend for the sector. But amidst the constant market volatility characterized by high profile bankruptcies.
Legal action pending by the Supreme Education Council
Notably, the SEC has opened investigations into the collapse of lending platform Celsius Network and Three Arrows Capital amid intense calls to protect investors. The agency is also investigating Yuga Labs, who are the creators of the Bored Ape suite of non-fungible tokens (NFTs).
“I am in the ‘yes’ camp. As a professional investor, you need a regulated investment opportunity that opens the doors for more professional investors to get involved in cryptocurrencies, if they are more regulated,” said Chris Gaffney, Head of Global Markets at TIAA.
Meanwhile, a lack of regulation has been cited as a reason to keep the institutional investors who played an instrumental role in the recent cryptocurrency revolution away. However, there is general agreement that clear regulations will attract institutional investors waiting on the sidelines. In addition, the Coinphony report indicated that high net worth investors continue to be interested in bitcoin despite the prevailing uncertainty.
US Cryptographic Regulations
In addition, the United States is currently working on several parts of crypto regulations stemming from President Joe Biden’s executive order that led to the release of the White House Framework for Cryptocurrency.
Interestingly, despite the SEC’s crackdown on cryptocurrencies, the agency has come under scrutiny for allegedly stifling development in the space. Along these lines, Coinphony reported in July that crypto enthusiasts launched an online petition calling for the removal of SEC chief Gary Gensler from his post.
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Postgraduate study: Professional investors looking to invest in cryptocurrency despite SEC “aggression” first appeared on Coinphony.