This year’s crypto winter has caught the attention of the U.S. Securities and Exchange Commission as well as regulators around the world. Some of the major players in the market say they are pleased that the SEC is investigating some of the companies in the crypto space.
In the latest MLIV Pulse survey, 60% of the 594 respondents said they saw legal action in crypto as a positive sign for the asset class. One of the recent SEC actions is that of the bankrupt hedge fund Three Arrows Capital (3AC).
In addition, the SEC is also intervening in NFT marketplaces like Yuga Labs, the creators of the popular NFT BAYC collection. Chris Gaffney, president of global markets at TIAA Bank, said:
“I’m in the ‘yes’ camp. As a professional investor, you need a regulated investment opportunity and this 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.”
SEC to monitor crypto currency boom and bust cycles
Last year, bitcoin and the broader crypto-currency market peaked around November 2021. However, BTC has entered a nearly 70% correction since then, with the broader crypto space losing more than $2 trillion in investor wealth.
According to the survey, most investors are more optimistic about bitcoin and crypto-currencies than they were in July. Nearly 50 percent of investors believe the price of bitcoin will not fall below the $17,600 low reached in June.
This year has been largely split into two halves for the crypto sector. In the first half, major chaos reigned with the collapse of the Terra ecosystem and bankruptcies. However, a wind of optimism has been blowing again since July.
Ethereum’s Merge event has also brought joy to the crypto community. Many investors believe that Ethereum’s market value can eclipse Bitcoin’s in the next two years.
Respondents also remain divided on how they view crypto, with the two most popular responses being that crypto is:”future” and “Ponzi“. Victoria Greene of G Squared Private Wealth stated:
“The boom and bust dichotomy perfectly describes crypto and the wide range of potential outcomes. There are so many unknowns, including regulation and platforms, as well as what it actually is and what it will be used for. So, if you’re a true believer, you say this is the future.” People with a more traditional view may say it’s a Ponzi scheme.”