2022 will usher in regulatory clarity, institutional adoption says FTX’s Bankman-Fried
A regulatory environment characterized by widespread uncertainty remains the single biggest challenge for all ecosystems. The blockchain and cryptocurrency industry is no different. 2021 was full of chaos concerning regulations within the cryptocurrency sphere. But can 2022 change this narrative?
Increased regulatory clarity
I'll be on Bloomberg Tech at ~5:10pm EST today
— SBF (@SBF_FTX) January 3, 2022
FTX crypto exchange founder Sam Bankman-Fried, or SBF, certainly is adopting a firm stance on this topic. While speaking at a Bloomberg interview, the exec opined that the crypto industry will enjoy an increased rate of institutional adoption as regulatory clarity improves around the world.
Despite the rocky end to 2021 for Bitcoin or even the crypto market in its entirety, SBF stated, “I’m optimistic about it (the price of Bitcoin),” adding,
“Things that make me optimistic basically are (related to) more regulatory clarity in the U.S and globally, -which I think could help a ton- and institutional adoption. And I think those are also related to each other.”
Needless to say, institutional adoption could boom, once the aforementioned goal is achieved. As covered before, many firms have portrayed the need for a transparent regulation. Once ready, they (executives) or institutions would readily embrace digital assets. Therefore, a lot of it depends on exactly what happens on the regulatory front.
That said, these changes would take a while – maybe a year. SBF doesn’t expect anything evident in the next 3 to 6 months. “It’s going to be a long process, probably stretched out over a few years,” he added. Furthermore, “a lot of different governments announced that there will be regulatory frameworks coming out over the next year,” he noted.
Flooding the gates, let it flow
At present, different large firms including banking institutions such as JPM, Morgan Stanley etc. have already incorporated these digital assets within their ecosystem. Soon, institutions are starting to flood into the crypto ecosystem. He said,
“Basically every large financial institution I’ve talked to, every large bank, every large investment bank, pension funds, they’re all eyeing this sector.”
Sam Bankman-Fried expects that 2022 will mark the beginning of a significant breakthrough in stablecoins regulations and likely a greater involvement of the SEC and CFTC.
Metaverse to explode
Further down the interview, the youngest crypto billionaire expressed his projection(s) for the aforementioned combination. He pointed out that with billions of gamers worldwide, NFTs in video games will likely be one of the largest roles that crypto plays in the metaverse. Although, it will take years to grow, the sector possesses the potential to become a global major industry.
“I think (we’ll be) starting to see digital assets make an appearance there (in the metaverse). I expect that’s going to happen in the next few years.”
Adding context to the above observation, it is important note, that here were about 3.2 billion gamers in the world in 2021 according to Statista. However, the crypto gaming industry comprises just 1.2 million gamers according to DappRadar. So, there is certainly room for expansion here.