Regulatory clarity and institutional adoption are areas of note for the crypto space in 2022, says the FTX chief executive Sam Bnakman-Fried.
FTX CEO says the industry should expect the first batch of crypto regulation this year.
Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX, has said that the crypto space could see an explosion in institutional investments in 2022, citing the potential for more clarity in the regulatory climate in the US and across the globe.
Although he sees the “first batch” of crypto regulations out this year, Bankman-Fried says the industry should not expect so much movement around the topic.
The FTX boss says that a lot of what happened in 2021 was just “preparatory” work, adding that he doesn’t think there will be loads of activity. But he is “optimistic” that institutional investors will be ready if the regulatory climate is conducive for them to make a splash.
"I do think that there's going to be a lot happening this year. We've already seen what happened last year,” he said, adding that “a lot of that has been preparatory."
A long march to institutional crypto adoption
Bankman-Fried told Bloomberg in an interview that should major institutional players see a move towards clear oversight and regulation, the amount of investment that could come into crypto would be in a “tidal wave.”
Yet, he feels that the much anticipated global institution adoption of crypto might not happen in a swoop this year. Just like with the move towards global regulation, he believes it’ll take time for widespread mainstream adoption of cryptocurrencies on Wall Street.
According to him, this whole process could span a few more years even as the market grows.
"It's going to be a long process, probably stretched out over a few years," the FTX chief noted.
On the question of who it is in the investment world, he sees getting onto the crypto bandwagon in 2022 and beyond, Bankman-Fried pointed to “every large bank, every large investment bank, [and] pension funds,” He noted all these players have explored the crypto sector.
The FTX CEO also talked about metaverse and non-fungible tokens (NFTs), sectors that have Big Tech and Wall Street buzzing. These were breakout technologies in 2021 and Bankman-Fried believes they could be key components of the Web 3.0 space.
Sam Bankman-Fried also talked about the issue of crypto regulation in December, emphasising the need for proper oversight that promotes the industry. He told CNBC’s “Mad Money” show :
“Let’s make sure that the regulatory oversight that needs to be there is there and oversight that doesn’t make sense isn’t gumming the industry,”
It’s a call many within the crypto space have made, with countries such as the US, UK, and India showing signs and intent in 2021.