Institutional Confidence in Crypto Regulation
A recent study conducted by Nickel Digital Asset Management has revealed a growing confidence among institutional investors and wealth managers in the regulation of crypto and digital assets. The study indicates a decreasing trend in the perceived bad actor risk within the industry.
Research Findings
- 88% of organizations invested in the sector believe the risk of another FTX-style scandal has decreased.
- 35% of respondents stated that the risk has fallen sharply, marking a significant improvement from previous assessments.
- Concerns remain, with 10% noting no change in risk and 2% expressing an increase in perceived risk.
Regulatory Influence on Investment Decisions
- Approximately 93% of institutional investors and wealth managers stated that regulators have an impact on their investment decisions.
- 22% acknowledged that regulatory influence significantly shapes their investment choices.
- Nearly all participants (99%) have confidence in the commitment of regulators worldwide to enforce strong regulations in the sector.
Regional Regulatory Perspectives
- European regulators are currently perceived to have the highest influence on investment decisions, as indicated by 34% of respondents.
- In comparison, 19% identified Asian regulators, and 13% each pointed to US and central/South American regulators.
- A smaller percentage attributed the highest influence to the UK (12%) and the Middle East (9%).
SEC’s Crucial Role
The research highlights the pivotal role of regulatory clarity from the US Securities and Exchange Commission (SEC), with 83% rating its future role as extremely or very important. The recent appointment of Paul Atkins as Chairman replacing Gary Gensler has been noted as a significant development.
Conclusion
Overall, the study underscores the increasing confidence in regulatory frameworks within the crypto and digital assets sector. The alignment of regulatory efforts globally is seen as a positive signal for investment opportunities.
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