Here’s How SEC Investigation Is Making Crypto Attractive to Institutions

This year crypto winter has attracted the attention of the U.S. Securities and Exchange Commission as well as regulators worldwide. Some of the top market participants say that they are happy with the SEC investigating some of crypto’s naughtiest companies in the space. Thus, they are likely to ramp up their investigations in the crypto space.

During the latest MLIV Pulse survey, 60% of 594 respondents said that they view the legal action in crypto as a positive sign for the asset class. One of the recent interventions by the SEC is that of the bankrupt hedge fund Three Arrows Capital (3AC).

Furthermore, the SEC is also intervening in NFT marketplaces like Yuga Labs, the creators of the popular BAYC NFT collection. Chris Gaffney, president of world markets at TIAA Bank said:

“I’m in the ‘yes’ camp. As a professional investor, you need a regulated investment opportunity and it opens the doors for more professional investors to get involved in crypto, if it’s more regulated. The more they can get crypto out of the Wild West and into traditional investing, the better off it’s going to be.”

SEC Watching Crypto’s Boom and Bust Cycles

Last year, Bitcoin and the broader cryptocurrency market peaked at around November 2021. However, BTC has entered nearly 70% correction since then with the broader crypto space eroding more than $2 trillion in investors’ wealth.

As per the survey, most investors are more optimistic about Bitcoin and crypto than they were in July. Almost, 50% of the investors believe that the BTC price won’t fall below the June lows of $17,600.

This year has been largely split into two halves for the crypto sector. During the first half, there was major chaos with the collapse of the Terra ecosystem and bankruptcies. However, there’s been a fair bit of optimism brewing once again since July.

Ethereum’s Merge event also brought cheer to the crypto community. Many investors think that Ethereum’s market value can eclipse that of Ethereum’s in the next two years.

The survey respondents also remain divided on how they crypto with the two most popular answers being crypto is: “future” and “Ponzi”. Victoria Greene of G Squared Private Wealth said:

“The dichotomy between boom and bust perfectly describes crypto and the vast range of potential outcomes. There are so many unknowns, including regulation and platforms as well as what the hell it actually is and what it will be used for. So, if you are a true believer, you say it’s the future.” People with more of a traditional view may say it’s a Ponzi”.