The current regulatory environment in the United States creates barriers for institutions trying to enter the cryptocurrency space, says Matthew Siegel, head of digital asset research at VanEck. But this may change soon with the upcoming presidential elections.
“The Biden administration does not want banks and brokers to touch digital assets,” Siegel said. Decryption In an interview at the VanEck Southern California Blockchain Conference, co-hosted by Blockchain USC. He said: “They are using explicit and verbal pressure to achieve this goal.” The term “pull” refers to tactics that attempt to influence or pressure through persuasion rather than force or authority.
The results of the upcoming presidential election, in which President Joe Biden will once again face former President Donald Trump, could have a significant impact on the cryptocurrency industry, as well as other sectors of the US economy. Van Eck's Siegel suspects that a Biden defeat would be a boon for digital assets and their broader adoption.
“If the presidency changes, we will see more support for this industry,” Siegel said.
Bitcoin It is currently at the beginning of what looks to be the next uptrend, just one week after setting a new all-time high above $73,000. Much of this action appears to be driven by renewed interest in Bitcoin from retail investors following the historic launch of spot Bitcoin ETFs in the US market.
VanEck was early among asset managers to recognize Bitcoin's disruptive potential, Siegel said, leading the company to pursue a Bitcoin ETF, a type of investment vehicle that allows buyers to gain exposure to Bitcoin without having to purchase and store the digital asset directly. But the SEC has stymied those efforts, rejecting every application for a Bitcoin exchange-traded fund that has come before the agency over the past decade.
“We tried to launch a Bitcoin exchange-traded fund, but it didn’t happen,” he said. “So, we started investing in projects across space to build relationships and knowledge.”
VanEck first applied for a Bitcoin ETF in June 2018. It was only in January of this year that the SEC finally approved 10 Bitcoin ETFs for trading, including VanEck Bitcoin Trust's “HODL” ETF.
“Now, we have a full suite of products, including tokens, stocks and… [Bitcoin ETF]“Siegel said.
While Siegel did not name a specific office or agency in his rebuke of US regulators, many in the cryptocurrency space, including SEC Commissioner Hester Peirce, have accused the SEC and its Chairman Gary Gensler of regulating through enforcement rather than providing a framework. Clear regulation of cryptocurrencies. Origins.
Gensler has received support from prominent anti-crypto Democrats such as Massachusetts Senator Elizabeth Warren and California Congressman Brad Sherman.
“The commission has been loud and clear that cryptocurrencies do not get approval for long-term security laws that protect investors and ensure the integrity of our financial markets,” Warren said last year speaking to the American Economic Liberties Project. “This is the right approach — the SEC has the right rules and the right experience, and Gary Gensler is proving to be the right leader to get the job done.”
These tactics and stricter rules for publicly traded companies prevent companies from dealing in cryptocurrencies, Siegel said.
While some financial institutions have not considered adding Bitcoin to their regular investment offerings, such as stocks and bonds, Siegel expects that financial advisors' views on their clients' digital assets may change as more firms reconsider Bitcoin.
“We're starting to see more of these models working and we're starting to think about adding Bitcoin, and I think that's the next stop in this bull market,” Siegel said.
