According to a report by Decrypt, Matthew Sigel, the head of digital asset research at the American asset management company VanEck, stated that the current regulatory environment in the United States is creating barriers for institutions seeking to enter the cryptocurrency space, but this situation may change soon after the next presidential election.
Speaking at the “VanEck Southern California Blockchain Conference” in an interview with Decrypt, Sigel said that the outcome of the upcoming presidential election, where President Biden will once again compete against former President Trump, could have significant implications for the cryptocurrency industry and other areas of the U.S. economy. Sigel believes that Biden’s reelection could be beneficial for digital assets and their broader adoption, stating that VanEck was among the first asset management companies to recognize the disruptive potential of Bitcoin and has been seeking a Bitcoin ETF, although these efforts have been hindered by the U.S. Securities and Exchange Commission (SEC). VanEck first applied for a Bitcoin ETF in June 2018, and it wasn’t until January of this year that the SEC finally approved 10 Bitcoin spot ETFs for trading, including the “VanEck Bitcoin Trust” (VanEck Bitcoin Trust, with the code HODL).
SEC and Chairman Gary Gensler have yet to provide a clear regulatory framework for cryptocurrencies, instead opting for enforcement-based regulation. The agency has also received support from several high-profile Democratic opponents of cryptocurrency, including Senator Elizabeth Warren and Congressman Brad Sherman. However, many in the cryptocurrency industry have criticized the SEC’s regulatory approach, with Sigel stating that these measures and stricter rules for publicly traded companies are hindering corporate participation in cryptocurrency trading.
While some financial institutions have not yet considered adding Bitcoin to their regular investment products, such as stocks and bonds, Sigel anticipates that as more companies reconsider Bitcoin, financial advisors’ views on digital assets for clients may change. He stated: