All eyes of the financial world are focused on the crypto space right now as we move into 2019. This arena is still in its nascent phase largely and there are some major developments regarding it that the people are waiting. One of these developments is the approval of the establishment of a crypto-linked exchange-traded fund (ETF) by the regulatory body in charge of the situation, the United States Securities and Exchange Commission (SEC). Another one is regulatory clarity, which is currently non-existent and as a result, the entire arena has largely been turned into the wild west.
As we move into 2019, these developments remain to be in the primary focus. But what will be more significant, an ETF or the regulatory clarity? Here are some of the things that we need to keep in mind.
The world of cryptocurrencies is currently rife with illegal activities and scams. Many investors have been scammed up until now. This is the reason why the reputation of cryptocurrencies in the media and the general public is largely negative. Since this space is filled with fraudulent and manipulative activities, institutions are holding back from entering it and as a result, a large amount of money is sitting on the sidelines. Although an ETF will provide the institutions with an intermediate fabric of security, trust might not be fully established regarding this space unless the regulatory clarity is obtained.
In a talk with BlockPublisher, Jason Anthony Williams, the co-founder and general partner of Morgan Creek Digital, recently stated regarding this issue,
I think it happens in 2019. I don’t think it’s a big event. I don’t think ETF is as big as regulatory clarity. And they probably happen around the same time because I think part of the ETF issue is the regulatory clarity.
Talking about what might drive cryptos into large-scale adoption in the future, he also said:
2019, in my opinion, if we have major regulatory clarity. When you see major regulatory clarity come about in the United States, you’ll see the next move of adoption, institutional investment, and important price movement. Right now, price isn’t gonna move on some good news story or an article you write. Let the government’s start to endorse this. Let a major government endorse bitcoin as a federal currency. You’ll see some big moves. It could happen in 2019.
The makes the picture pretty clear for us. Governmental acceptance and regulatory laws will help wipe out the illegal activities associated with this world. With rules and procedures in place in addition to the governmental backing, the crypto space might see some serious boost in terms of acceptance among institutions and organizations moving into the future. Trust is the key thing that needs to be developed as soon as possible.