Gregg Wysocki, senior manager of US Hedge Fund Sales at Coinbase Global, Inc. COIN, shared his excitement for the future of digital asset adoption heading into a new era and regulatory environment.
The Details: Wysocki pointed to regulation as the key to large institutional adoption and investment in cryptocurrency.
"Regulation unlocks everything," Wysocki said at Benzinga's Future of Digital Assets event.
The Coinbase senior manager said regulation provides "rules of the road" which allows institutional investors to trade and own digital assets by identifying and managing risk. He said the biggest risks are those that are unknown and unidentified.
Some of the guardrails required for institutional-level investments in the crypto markets, include:
- Investor protection measures
- Anti-money laundering (AML) protocols
- Know-your-customer (KYC) protocols
- Standardized reporting and transparency requirements.
President-elect Donald Trump met with Coinbase’s CEO Brian Armstrong on Monday to discuss potential cabinet appointments that could have major effects on the future of U.S. crypto regulation.
Wysocki noted that through increasing regulation institutions will be able to be involved in an expanded crypto market, extending past Bitcoin BTC/USD and Ethereum ETH/USD. Institutional investors bring substantial capital to the crypto market, which can increase liquidity and stability for all investors in the market.
He also highlighted regulation as enhancing the crypto market structure by bringing it closer to the standards of traditional financial markets while preserving the benefits of blockchain technology. Improved market structure can help attract institutional investors, ensure market stability and foster the long-term growth and adoption of cryptocurrencies.
"It's a very bullish backdrop from where I sit," Wysocki told the panel in closing.
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