Institutional Investors Say With More Power to Regulate Crypto, SEC Will Raise Prices – Regulation

Institutional investors are optimistic that the US Securities and Exchange Commission (SEC) will have more power to regulate the crypto market, a recent survey shows. They believe that cryptocurrency prices will be positively affected if the SEC is given additional powers.

What institutional investors think about crypto

Nickel Digital Asset Management, a regulated European digital asset hedge fund manager, recently published a report on institutional adoption of crypto assets.

The report includes a survey and interviews with 50 asset managers and 50 institutional investors in the US, UK, Germany, France and the United Arab Emirates (UAE). Together they manage around $108.4 billion.

The report explains that security concerns are at the top of the list as to why institutional investors are skeptical about investing in crypto assets. According to the survey results, 79% of all respondents see asset custody as the most important aspect of investing in the crypto space. The report further states:

This was followed by 67% citing price volatility, 56% citing market capitalization and 49% citing the regulatory environment.

“Another 12% ranked the carbon footprint of Bitcoin and other cryptocurrencies among the top three reasons not to invest,” the report adds.

Respondents were also asked about crypto regulation. SEC Chairman Gary Gensler has called on Congress to give the SEC more authority to regulate crypto exchanges and activities such as trading and lending.

The majority of respondents are optimistic that the SEC will gain more power to regulate crypto assets. Among them, 76% expect this to be granted this year.

The report details:

If the SEC is granted these additional powers, 73% of institutional investors and asset managers believe it will have a positive impact on the price of crypto and digital assets, and 32% believe it will have a very positive effect.

Do you think the SEC should have more power to regulate the crypto space? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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