The fierce attack on crypto by the US Securities and Exchange Commission (SEC) is cause for great concern within the crypto industry. Will the regulator’s actions cause crypto to slowly become isolated? Bernstein, an investment firm, thinks not.
SEC actions do not affect other stablecoins
In a report, the company writes about the concerns that have arisen after the actions of the SEC. For example, crypto could be slowly closed off from the banking system as a result of the attack on stablecoins. But so far there is no reason to think so, says Bernstein. For example, Circle, the company behind USDC, has not yet received a letter from the SEC. So it seems to be aimed at specific companies, whether or not because of the construction of their stablecoins.
According to the investor, it is likely that the recent actions can have a positive effect for crypto managers who have a banking license in the United States. In addition, there are positive developments in the field of legislation and regulations in other parts of the world:
“While US regulations appear to be tightening, the regulatory rumble from Hong Kong appears to be a net positive, with an expected easing of standards, […] we wouldn’t be surprised if the crypto market is initially led by Asia until regulatory fears in the US subside.”
Large parties are getting into crypto
The positive effects of the developments in Hong Kong have already been seen in the crypto news. For example, the largest bank in Southeast Asia, DBS, wants to offer crypto in Hong Kong.
Before that it was already read that a majority of the wealthy in the country have already invested in bitcoin. This and the news above shows that the regulatory environment in the country may be starting to become more attractive to crypto investors and businesses.