SBF: A clear regulatory framework and institutions may help Bitcoin make a comeback

Original source: Business Insider

FTX CEO Sam Bankman-Fried says institutional adoption of cryptocurrencies could Accelerate in 2022, and the exact speed depends on the degree of regulatory clarity in the United States and globally. He believes that the activities of the crypto industry in 2021 have laid the foundation for the bigger things to come.

FTX CEO Sam Bankman-Fried said that clear regulation will open the door for some large investment banks and pension funds to enter the Crypto industry this year, and digital asset regulation The development of the market will determine the speed at which financial institutions enter the market.

At In an interview published on January 3rd , SBF said: "When we find that regulation is becoming clear At that time, the entry of institutions may come in like a tide, or enter like a trickle.”

Nevertheless, institutions are not expected to enter the market quickly for at least the next six months, as institutions need time to onboard new platforms and assets.

“It will be a long process, it may last for several years, and the market size may be very large.” He said. “I’ve had discussions with every big bank, every big investment bank, pension fund, they’re all looking at this industry. A lot of them are already starting to develop crypto-related businesses, but it’s slow and needs time."

A growing number of financial institutions, including BlackRock, MasterCard and Visa, have launched Crypto-related products. Some financial advisors are advising their clients that digital assets should be part of their investment portfolios, no matter their age.

SBF, who founded FTX in 2019, pointed out that the various activities in the Crypto industry in the past year are only the foundation of the future to come.

“I do think a lot is going to happen this year,” SBF said. "We've seen what happened last year. But a lot of it was preparation."

In 2021, cryptocurrencies such as Bitcoin and Ethereum began to appreciate as some investors sought ways to hedge against high global inflation. Growing mainstream interest has fueled a surge in retail demand across the market, with data showing that global cryptocurrency adoption has grown by more than 880% this year.

Cryptocurrencies in general have retreated in recent weeks. When asked if he thought Bitcoin would make a comeback in 2022, SBF expressed his optimism.

“The thing that makes me optimistic is more regulatory clarity in the U.S. and globally, which I think will help the industry a lot, as well as institutional adoption,” He said. “I think these are all interrelated. I think we may see the first regulatory frameworks for digital assets come out in 2022, and the stablecoin industry in particular may get some ground rules.”

SBF also talked about the Metaverse — a futuristic virtual landscape where people can interact, buy NFTs, and even date — that got Wall Street establishments excited. Strong interest. He believes that the Metaverse will take time to materialize and become a mature technology.

“I expect, at least relatively speaking, that some of the pure NFT activity we’ve seen lately may cool off – unless we see a ton of new users and brand partnerships Enter the NFT space," he said. "But I think it's going to happen, and it's going to drive the next growth in Web3." 

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