The crypto industry needs to be regulated, according to market leaders. MicroStrategy CEO Michael Saylor explained that regulatory clarity around the crypto industry is bullish for Bitcoin.
Recently, Janet Yellen, the Treasury Secretary nominee of the newly elected US president Joe Biden said cryptocurrency is involved in illicit activities. Such type of statement from the new government may not prove right for the crypto industry.
But some personalities in the sector believe that crypto regulation will divert investors’ attention more towards Bitcoin and other products.
Regulation is Important
MicroStrategy CEO said that government scrutiny would increase investment in the top digital currency. It is because institutional investors like to invest in regulated assets. He explained that investors are already buying the top digital asset from the exchanges regulated and complied with necessary policies such as Know Your Customer (KYC) and Anti-Money Laundering (AML).
If the US government gives Bitcoin a legal position, it will become a mainstream asset like many other famous traditional assets. At the end of his talk at Salt Talks, he said Bitcoin “needs to be better than gold to be successful.”
Recently, Ripple explained a lot of things that are expected to happen in 2021 regarding cryptocurrency. Stu Alderoty from Ripple said the future of digital assets in the United States is tied to the government’s favorable attitude. The sector needs friendly regulations for growth and innovation. He hopes that Biden’s team may come with healthy improvements in the crypto industry. The chance of cryptocurrency going mainstream is linked with friendly rules and regulations.
However, the Securities and Exchange Commission (SEC) ‘s recent actions were very painful for the crypto community. For example, the SEC filed a lawsuit against Ripple Lab and its top executives to violate SEC’s rules and regulations. The regulator called XRP security and accused the founding members sold a lot of coins for personal benefits. As a result of the lawsuit, many crypto exchanges in the US and outside of the US delisted XRP from the trading platforms. However, the San Francisco-based company is hopeful of the SEC’s coming chair that he will relieve pressure from the company. But there are meager chances that the new head will take down the case against Ripple.