According to Decrypt, Matthew Sigel, the head of digital asset research at VanEck, a US asset management company, said that the current regulatory environment in the United States is creating barriers for institutions trying to enter the cryptocurrency field. However, this situation may change soon after the next presidential election.
Sigel, speaking at the “VanEck Southern California Blockchain Conference” in an interview with Decrypt, stated that the outcome of the upcoming presidential election between President Biden and former President Trump could have a significant impact on the cryptocurrency industry and other sectors of the US economy. Sigel believes that Biden’s loss could be beneficial for digital assets and their wider adoption. He stated:
“In several asset management companies, VanEck was early to recognize the disruptive potential of Bitcoin, which led the company to seek a Bitcoin ETF. However, these efforts were hindered by the US Securities and Exchange Commission (SEC). In June 2018, VanEck first applied for a Bitcoin ETF, and it wasn’t until January of this year that the SEC finally approved the trading of 10 Bitcoin spot ETFs, including the VanEck Bitcoin Trust (HODL).”
SEC and its chairman, Gary Gensler, have not yet provided a clear regulatory framework for cryptocurrency assets, opting for enforcement-based regulation instead. The institution has also received support from several high-profile Democrats who are against cryptocurrencies, including Senator Elizabeth Warren and Congressman Brad Sherman. However, multiple figures in the cryptocurrency industry have criticized the SEC’s regulatory approach. Sigel stated that these tactics and stricter rules for public companies hinder corporate participation in cryptocurrency trading.
Some financial institutions have not yet considered adding Bitcoin to their mainstream investment products, such as stocks and bonds. However, Sigel expects that as more companies reconsider Bitcoin, financial advisors’ views on digital assets may change. He said:
