Since the first quarter, crypto trading volumes have not stopped falling. Retail investors, for example, fear losing their investments. For the majority, they liquidated their positions while waiting for better days. According to the president of the FTX.US exchange, two essential conditions must be met before a possible relaunch of trading volumes.
The crypto rebound and regulation?
Last week, Brett Harrisson, president of crypto exchange FTX.US, gave an interview to Fortune in which he discussed the situation of the crypto market. According to him, there are two catalysts that are likely to kick-start digital asset trading volumes. These are the crypto price rebound and clear regulation.
“There are two events that would likely bring a lot more volumes. The first is the rise in crypto prices. This is also true for stocks. Number two, I think, is when there will actually be regulatory clarity on the industry and crypto exchanges”he said.
As a reminder, with the crypto winter and its devastating impact on prices, the majority of players have withdrawn their investments. Now everyone is patiently waiting for a price rebound to reposition and continue trading. On another note, the intensification of talks and negotiations on a global scale (part of regulatory efforts) have also caused some market participants to withdraw.
Given that in the United States, the debate is very advanced and that efforts towards regulation are continuing normally, Brett Harrisson believes that the definition of a clear legal framework in the country will have a snowball effect. Hence, it will speed up regulation around the world and give a boost to trading volumes.
“The recent bill proposed by US officials to empower the Commodities Futures Trading Commission (CFTC) to oversee many digital assets could be the clarity markets are looking for (…) Let’s say it passes, and now the CFTC is the regulator, FTX.US will be able to register as a digital asset exchange. Every institution, every hedge fund, every family mutual fund that wants direct exposure to cryptos can do so on an exchange that is explicitly authorized by the federal government. I think it will make a huge difference”Harrisson continued.
FTX.US President Brett Harrisson believes that without rising crypto prices and clear market regulation, there will be no recovery in trading. In this case, the future of the market depends, to some extent, on the regulatory efforts of the industry.
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