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U.S

Crypto Regulation How Will Effect ?

What's in this article

Although some experts think that the regulations will affect the crypto market badly. It can make people trust and get used to Crypto. Although the crypto market is small, regulations will come eventually.

The Republican Senator introduced on June 7 a crypto bill in collaboration with Senator Kirsten Gillibrand (NY-D).

It is critical that the US plays a leading role in developing policy to regulate new financial products, encouraging innovation, and protecting consumers,” wrote Gillibrand on her website. “Importantly, the Lummis-Gillibrand framework will provide clarity to both industry and regulators while also maintaining the flexibility to account for the ongoing evolution of the digital assets market.”

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The bill proposes a framework that enables big institutions to enter the space and protects retail investors from bad actors without taking away from their self-ownership and individual freedom. Equally important, it’s being pushed by members of both U.S. political parties, which increases the odds that it’s accepted.

Although a great start, there is still a long way to go. The draft will be presented to four political committees for deliberation before reaching the U.S. Senate. 

The Bull

In the past two years, traditional finance started looking at Bitcoin and other cryptocurrencies with new eyes. 

In the past two years, traditional finance started looking at Bitcoin and other cryptocurrencies with new eyes. 

Nevertheless, sovereign wealth, pension funds, and almost all of the most prominent institutions are waiting on the sidelines until policy kicks in. Kevin O’Leary, a well-known Canadian businessman, believes trillions will flow into crypto once that happens. 

Nevertheless, sovereign wealth, pension funds, and almost all of the most prominent institutions are waiting on the sidelines until policy kicks in. Kevin O’Leary, a well-known Canadian businessman, believes trillions will flow into crypto once that happens. 

About 90% of invested capital on Earth is held by sovereign funds and pension plans, and they own zero crypto. So Bitcoin reaching a market cap of $800 billion is irrelevant,” said O’Leary in a recent interview with Bankless. “As indexers, we service these institutions and always ask them how much would they allocate to crypto if they could. And they say between 50 and 100 basis points.

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Crypto

Many of these funds manage hundreds of billions of dollars and try to remain well-diversified. Therefore, a portfolio allocation of 1% to Bitcoin and other cryptocurrencies would bring unprecedented demand to digital assets. Moreover, price volatility could finally start dialing down, as funds sell when prices pass their allocation level and buy back when prices fall below it.

Related : Voyager Digital issues notice of default to Three Arrows Capital

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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