- Biden’s administration is expected to bring positive crypto regulations, Tom Jessop
- President Joe Biden’s pick for chairman of the SEC represents a constructive attitude towards the industry
- There is still strong demand for Bitcoin from institutional investors
Tom Jessop, the president of Fidelity Digital Assets has expressed his predominantly positive views on the future of Bitcoin and cryptocurrency regulation under President Biden’s administration. Jessop also confirms the increasing demand for Bitcoin from institutional buyers.
Favorable Crypto Regulations Under President Biden
In a recent interview, Tom Jessop expressed his optimistic views that the new administration will support the growth of the crypto industry. He starts by sharing his opinion about the president’s pick to head the U.S. Securities and Exchange Commission (SEC), Gary Gensler.
He explains that the move represents a constructive approach towards the regulation of the crypto industry. Given the experience of Gary Gensler, Jessop, who heads the Corporate Business Development for Fidelity Investments and president of Fidelity Digital Assets, believes that the administration will implement positive crypto laws.
Jessop opined that the previous administration had begun to lay the groundwork for a constructive regulation of the crypto industry. He explains that the Comptroller of the Currency (OCC), under Brian Brooks, had implemented some positive regulations for the industry.
In early January, the regulator had announced that national banks and federal saving associations were now allowed to directly connect with blockchains and use stablecoins. This granted stablecoins a level of acceptance similar to debit cards and cheques.
In commenting on the new Treasury Secretary, Janet Yellen’s remarks that cryptos were popular for being used for illicit transactions, Jessop pointed to a recent report that proved that crypto-related crimes fell to only 0.34% of all crypto transactions in 2020.
On the Flipside
- Iran has issued a ban on the use of Signal, the privacy-centered messaging app
- The move comes just after it was rumored that Signal was working on integrating a cryptocurrency into its platform
- Starting from January 25, Iranians have been reporting issues in connecting to Signal
Strong Demand for Bitcoin From Institutional Investors
Once again, the crypto market is in a turbulent season, and there fears that Bitcoin, the leading crypto, would lose its appeal to investors due to its volatility.
In speaking on the drastic price movements, the president of Fidelity Asset notes that;
Our clients, institutions that work with us, have been steady net buyers throughout the entire period and we continue to see strong demand among institutions for access to the asset class. That’s really our perspective on what’s happened recently.
In his opinion, the participation of institutional investors in the market has put Bitcoin in a different situation as it was in 2017 when the first bubble burst. He notes that now, there is a much broader base of institutional service providers.
He opines that this adoption is helping the market matures, as liquidity of the asset increases, as well as its use cases. As for the price of Bitcoin, Jessop opined that the number one cryptocurrency is currently experiencing a period of healthy consolidation.