- Institutions have flooded the crypto industry in the past week.
- The timing of the influx has raised eyebrows within the crypto community.
- Binance‘s CEO Changpeng “CZ” Zhao recently lent his voice to the speculations.
Over the past week, several big names in traditional finance have announced plans to launch crypto-related products, with the Citadel and Fidelity-backed EDX exchange being the latest addition.
While institutional crypto adoption is often celebrated, the latest influx has raised eyebrows against a regulatory crackdown on pioneers. Binance Chief Executive Officer Changpeng “CZ” Zhao recently lent his voice to the murmurs within the crypto community.
A Coordinated Strategy?
“Impeccable timing,” Zhao quipped, commenting on the EDX exchange launch in a now-deleted tweet on Wednesday, June 21, adding, “But the more the merrier.”
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The Binance chief’s sentiments notably mirror those of other crypto community members. CryptoLaw founder Attorney John E. Deaton expressed similar views suggesting that recent crypto enforcement actions from the United States Securities and Exchange Commission were all part of a grand scheme to allow traditional financial institutions to take over.
Jake “Crypto King” Greenbaum appeared to share this view, surmising that the SEC was driving away the competition.
These sentiments follow U.S. regulators’ recent heightened crackdown on the industry. The SEC, in particular, has taken no prisoners, most recently suing Binance and Coinbase in its crypto enforcement barrage.
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In the wake of the onslaught, several crypto firms have chosen to shutter U.S. operations or focus expansion efforts abroad.
On the other hand, several institutional giants like BlackRock, Fidelity, WisdomTree, and Invesco US have revealed plans for crypto-related products in the past week.
On the Flipside
- Many traditional financial institutions that have shown interest in launching crypto-related products in the past week have long been involved in the space.
Why This Matters
Zhao’s statements underscore the crypto industry’s growing distrust of U.S. regulators. Additionally, his statements suggest he is still willing to tough it out despite growing legal trouble.
Read this to understand the controversy surrounding the classification of BlackRock’s spot Bitcoin exchange-traded fund offering:
Understanding BlackRock’s Bitcoin Proposal: ETF, Trust, or Something Else?
Learn why Binance‘s integration of Bitcoin’s Lightning Network has sparked excitement:
Binance Sparks Excitement with Bitcoin Lightning Network Nodes
