The $20 trillion financial advisory sector in the US is facing regulatory uncertainty, hindering its further investment in the cryptocurrency market. Chief Investment Officer Matt Hougan from Bitwise pointed out that this uncertainty has been a barrier to financial advisors increasing their cryptocurrency investments over the last five years.
Hougan emphasized the enormous expansion potential of the cryptocurrency market once regulatory clarity is achieved in the US. He mentioned that removing legal uncertainties could open the floodgates for trillions of dollars managed by financial advisors to enter the cryptocurrency market. Stay updated on the latest financial and business news by visiting COINTURK FINANCE.
Comparing it to the positive market impact of BlackRock, the world’s largest asset management company entering the cryptocurrency market, Hougan highlighted the potential influence. He suggested that if Wall Street fully embraces cryptocurrencies, it could signify a significant shift in the market.
While there are indications of regulatory progress in the US, such as the recent repeal of Staff Accounting Bulletin 121 and the passage of the Financial Innovation and Technology Act for the 21st Century (FIT21), challenges still persist in the cryptocurrency market. The approval of spot Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) on May 23 is viewed as another positive regulatory development.
Despite setbacks like President Joe Biden’s veto of the repeal of FIT21, Hougan remains optimistic about the future of the cryptocurrency market. He believes that there is still untapped potential for significant market actions, as regulatory clarity could bring about substantial changes. While progress is being made, the full impact of regulatory changes is yet to be seen, requiring patience from investors.
Hougan also noted that the cryptocurrency market is not fully prepared for potential regulatory changes, citing a lack of awareness and understanding among industry professionals. He urged for caution and advised investors to conduct their own research due to the high volatility and risks associated with cryptocurrencies.
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