Summary
TLDR: The current regulatory environment in the US is hindering institutions from entering the crypto space, but this could change with the next presidential election. VanEck’s Sigel believes a Biden defeat would be beneficial for the industry. The SEC denied Bitcoin ETF applications for years, but recently approved 10 spot Bitcoin ETFs. Some believe regulators like Gensler are enforcing rules instead of providing clear guidelines. Financial advisors may start considering adding Bitcoin to client portfolios, potentially boosting the market further.
Key Points
1. The current regulatory environment in the United States is creating barriers for institutions attempting to enter the crypto space, according to VanEck Head of Digital Assets Research Matthew Sigel. This could soon change with the next presidential election.
2. President Joe Biden’s administration does not want banks and brokers to touch digital assets, using explicit and verbal jawboning to achieve that goal. A potential change in presidency could lead to more support for the cryptocurrency industry.
3. Bitcoin is currently at the start of its next bull run, driven by renewed interest from retail investors following the launch of spot Bitcoin ETFs in the U.S. market. VanEck, a firm early to recognize Bitcoin’s potential, pursued a Bitcoin ETF but faced challenges from the Securities and Exchange Commission.