The current regulatory environment in the United States is a barrier for institutions looking to enter the cryptocurrency space, said Matthew Siegel, head of digital asset research at VanEck. However, this situation could soon change with the next presidential election.
“The Biden administration doesn't want banks and brokers to touch digital assets,” Siegel said. Decryption He spoke in an interview at the VanEck Southern California Blockchain Conference, co-sponsored by Blockchain USC. “They use overt verbal jaw-dropping to achieve their goals,” he said, adding that “jaw-throwing” is the use of influence and pressure through persuasion rather than force or authority. Refers to the strategy you are trying to use.
The outcome of the upcoming presidential election, in which President Joe Biden once again faces former President Donald Trump, could have a significant impact not only on the cryptocurrency industry but also on other sectors of the US economy. Van Eck's Siegel doubts that Biden's loss will be a boon for digital assets and their widespread adoption.
“With a new president, there will be even more support for this industry,” Siegel said.
Bitcoin is currently at the beginning of what appears to be the next bull run, with the stock one week away from hitting a new all-time high above $73,000. Much of the movement appears to be driven by renewed interest in Bitcoin from retail investors following the launch of the historic Spot Bitcoin ETF in the US market.
Mr. Siegel said Mr. VanEck was one of the early asset managers to recognize the disruptive potential of Bitcoin, and that it is a type of platform that allows buyers to gain exposure to Bitcoin without having to directly purchase and store the digital asset. This led to his pursuit of Bitcoin ETFs as an investment vehicle. However, the Securities and Exchange Commission has thwarted these efforts, rejecting every Bitcoin ETF application filed with the Commission over the past decade.
“We tried to get a Bitcoin ETF off the ground, but that didn't happen,” he said. “So we started investing in ventures across the universe to build relationships and knowledge.”
VanEck first applied for a Bitcoin ETF in June 2018. It was in January of this year that the SEC finally approved trading in 10 spot Bitcoin ETFs, including VanEck Bitcoin Trust's “HODL'' ETF.
“Now we have tokens, stocks, [Bitcoin ETF]''Siegel said.
Although Siegel did not name any specific offices or agencies in his accusations against U.S. regulators, many in the crypto industry, including SEC Commissioner Hester Peirce, said that the SEC and Commissioner Gary Gensler They accuse the government of regulating cryptocurrencies through enforcement rather than providing a clear regulatory framework. assets.
Gensler has received support from prominent anti-crypto Democrats, including Massachusetts Sen. Elizabeth Warren and California Rep. Brad Sherman.
Last year, Warren told the American Economic Liberties Project: “The committee has voiced that long-standing security laws designed to protect investors and ensure the integrity of financial markets do not apply to virtual currencies.'' We've made it very clear,” Warren said last year. “This is the right approach. The SEC has the right rules and the right experience, and Gary Gensler has proven to be the right leader to get the job done.”
Siegel said these tactics and strict rules for publicly traded companies are preventing companies from trading in cryptocurrencies.
While some financial institutions are not considering adding Bitcoin to their regular investment products such as stocks and bonds, more companies are reconsidering Bitcoin, making it an option for financial advisors to invest in their customers' digital assets. Siegel expects that view may change.
“We're starting to see these models working more and we're starting to think about adding Bitcoin. I think that's the next phase of this bull market,” Siegel said. said.
