“Regulatory Uncertainty Over Cryptos Threatens the Leading Position of the United States.”
In a note published Monday evening in the monthly newsletter of Ark Invest, the management company headed by Cathie Wood, Yassine Elmandra, head of the company’s crypto division, spoke about the regulatory environment for the market for digital assets such as Bitcoin and Ethereum in the United States. Elmandra; Elmandra noted that major trading firms, including Jane Street Group and Jump Trading1, are reducing their participation in the US crypto markets due to regulatory uncertainty and risk.
Elmandra reminded that the market was “once filled with well-established and reliable institutions” and used the following statements:
The cryptocurrency ecosystem in the US now faces a vacuum that could dampen interest from other institutional investors.
According to Elmandra, the lack of regulatory clarity is responsible for the recent turmoil in the crypto market:
As a result, cryptocurrency liquidity in the US has decreased significantly and cryptocurrency price volatility has increased. Bitcoin trading volume has dropped 75% from $20 billion a day in March to around $4 billion last week.
The uncertainty in the regulatory space seems to discourage both existing businesses and new entrants to the crypto space. This, in turn, puts the United States at risk of ceding its position at the forefront of a transforming industry to countries such as the United Arab Emirates, South Korea, Australia and Switzerland, Elmandra said.
Leave a ReplyWant to join the discussion?
Feel free to contribute!