Fresh demands from the U.S. financial regulators on cryptocurrencies are “a threshold moment” for Bitcoin and other digital assets, affirms the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The comments from Nigel Green, chief executive and founder of deVere Group, come as the Securities and Exchange Commission Chairman Gary Gensler has said that Wall Street’s top watchdog needs Congress to grant it more power to oversee the growing crypto market.
Mr Green says: “These demands by the SEC – the financial regulator of the world’s largest economy – underscore again that cryptocurrencies are a major growth market and are gaining further influence within the mainstream global financial system.
“The watchdog needs more powers over the market as there’s a clear direction of travel: both institutional and retail investors are taking Bitcoin and other cryptocurrencies more and more seriously as a financial asset and a medium of exchange. They are increasing their exposure to them at a faster rate than ever before.
“The SEC seems aware that digital assets are the inevitable future of money.”
He continues: “With increasing dominance and value, comes increasing regulatory scrutiny as we are seeing now.
“Gensler’s calls for the SEC to be given more direct authority over the burgeoning crypto sector will, I believe, be approved by Congress.
“This is a threshold moment as it shows that the time has come to hold crypto assets to the same standards as the rest of the financial system.
“This shake-up will likely generate some market turbulence, but ultimately regulation will be good for investors.”
One of the best ways to address the regulatory issues is via the exchanges, says the deVere CEO, adding that he believes this will be the route the SEC adopts.
A robust regulatory framework will help protect both retail and institutional investors, help combat cryptocurrency criminality, and reduce the potential threat of disrupting global financial stability, as well as offering a possible long-term economic boost.
“As such, the proactive and pragmatic approach now being taken by the Chairman of the SEC should be championed.”
Mr Green concludes: “Cryptocurrency regulation is required and, I believe, now inevitable. The SEC is one of the world’s most influential regulators and, therefore, its approach is likely to help shape the policies of others.”