The crypto industry would benefit from a crackdown by the US Securities and Exchange Commission (SEC) and other watchdogs. The latter investigated the nastiest companies in crypto. Nevertheless, market players have claimed that they are more likely to invest in this sector following greater enforcement action. According to the surveys carried out, opinions and opinions on the crypto sector remain divided among investors. But many see these restrictive measures as a positive sign for the crypto-sphere.
Crypto: SEC crackdowns a positive sign for investors
The latest MLIV Pulse survey indicated that almost 60% of 564 surveyed consider crypto legal actions to be a positive sign. The main interventions concerned US regulatory investigations like the SEC, on bankrupt crypto companies. These include Three Arrows Capital and Celsius Network. He also talks about an SEC scrutiny of Yuga Labs, the creators of NFT’s Bored Ape collection.
Chris Gaffney, president of global markets at TIAA Bank said he was on the “yes” side. He believes that investment regulations provide more opportunities for professional investors to get involved in the crypto sphere. This view extends to Bitcoin, where investors are now more bullish on crypto compared to July.
A crypto sector marked by high volatility
42% of respondents said they thought the correlation of cryptos to tech stocks would remain unchanged over the next twelve months. The 43% said they would increase their exposure to crypto over the same period, despite the actions of the SEC. That said, Bitcoin has maintained a strong correlation with risky assets since March. This, without changing its position in the last three months.
In addition, remember that chaos dominated the first half of 2022. Indeed, there were bankruptcies, in particular that of Voyager Digital Ltd. and the removal of $40 billion from the Terra blockchain ecosystem. By the end of 2021, approximately $2 billion in aggregate value has been wiped from the industry record. It was in June that things started to change with crypto capping at its current level.
Finally, respondents were asked to choose the word describing the crypto space. Most of the answers were divided between “Ponzi” and “future”. According to Victoria Greene of G Squared Private Wealth, crypto is almost like a religion. Those who believe in it will say that it is the future. On the other hand, those who have a more traditional vision can say that it is about a Ponzi.
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