Respondents were split on whether or not the SEC’s actions against Coinbase and Binance will be good for the digital asset sector.
According to some shareholders, the SEC’s regulatory activities may be reasonable. Ninety-two percent of institutional investors and asset managers think that the agency’s “regulation by enforcement” strategy is the best way forward for the sector, according to a poll released by Nickel Digital Asset Management on Tuesday.
Ninety percent of respondents also think the SEC’s recent proceedings against Coinbase and Binance will help the digital assets market in the long run.
According to Anatoly Crachilov, CEO of Nickel Digital, “improved regulatory oversight is vital” if the digital assets industry is to maintain its current excellent performance and enter the financial mainstream.
Based on responses from 200 institutional investors and wealth managers in the US, UK, Germany, Singapore, Switzerland, Brazil, and the UAE, this July 2023 survey was commissioned by Nickel Digital and performed by market research company Pureprofile.
The SEC began legal action against both businesses at the beginning of June, accusing them of operating as unregistered exchanges that market securities. Coinbase and its parent business were accused of violating five rules, while Binance faced 13 charges.
Cryptocurrency industry participants have analysed the SEC’s recent actions and have criticised the agency for being anti-innovation.
Because of this, several companies are giving serious thought to moving their operations elsewhere. For instance, as of September, Revolut will no longer provide cryptocurrency-related services in the United States owing to the complex legal climate.
Former SEC chairman Jay Clayton, meantime, has voiced significant opposition to the approach the US government has used to enact regulatory reforms.
The poll also found that respondents generally anticipate the United States to take the lead in establishing robust rules for the business, with the United Kingdom and the European Union following closely behind.
The Middle East was chosen by 21% of respondents, while 26% of those polled picked Asia as the area most likely to establish robust laws.
According to Crachilov, “regardless of which country ultimately leads the way,” the growing rivalry amongst governments to provide a favourable climate for cryptocurrencies will ultimately increase the asset class’s popularity.
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