Fidelity Digital Assets President Tom Jessop (Tom Jessop) expressed his views on the future of Bitcoin and cryptocurrency regulation under the Biden administration. He confirmed that Fidelity sees strong demand for Bitcoin from institutional buyers.
Fidelity Digital Assets is optimistic about Bitcoin’s future
In an interview with CNBC last week, Jessop explained the Biden administration’s expectations for cryptocurrency regulation. Jessop is the head of business development at Fidelity Investments and the president of Fidelity Digital Assets.
He first talked about Joe Biden’s election as the new chairman of the US Securities and Exchange Commission (SEC) Gary Gensler. Given the MIT blockchain professor’s experience in the field, Jessop said: “I think that from the development we might expect, it paints a more general constructive attitude or picture.”
The head of Fidelity Digital Assets also believes that the active encryption regulations implemented during the Trump administration will continue to exist. He said: “I want to point out that last year we saw some pretty interesting and good regulatory developments.” “You can check the OCC and the guidance they provide banks on access to asset classes, and even participate in some of these networks. “The Office of the Audit of the Currency (OCC) under Brian Brooks has introduced some aggressive cryptocurrency regulations. However, Brooks recently resigned.
Jessop said that during the previous administration:
We are already beginning to see more constructive cooperation with regulators… Given what we have seen in terms of institutional and retail demand, we believe this will continue into the new year.
Commenting on Janet Yellen’s recent remarks that cryptocurrencies are mainly used for illegal financing, Jessop said that it does worry him. However, he cited the latest report from the blockchain analysis company Chainalysis, which contradicts the new finance minister. The report found that crypto crimes dropped sharply in 2020 to only 0.34% of all crypto transactions.
Jessop said, without excluding Yellen’s concerns, “but I think there may be other places worth seeing… [illicit financing] Occurs with greater frequency and larger size. Therefore, I will not reduce the risk, but I think the risk may be less than what people might suggest. In addition, he believes that “it is decreasing or declining year by year, which is again positive for the further development of the ecosystem. “
Regarding the Bitcoin market, where prices have fluctuated sharply in the past few weeks, the President of Fidelity Digital Assets shared:
Our clients and the institutions we work with have been stable net buyers throughout the period, and we continue to see strong demand among institutions for access to asset classes. That is our view of recent events.
Fidelity executives said: “I think our current market is very different from the 2017 market.” He did not rule out the possibility that Bitcoin prices may fall in the future. He said: “I think the composition of investor interest has changed dramatically, and emphasized that we have experienced a “very retail-driven frenzy” starting in 2017. “What we are seeing now is a broader institutional adoption base. “
Jessop then quickly listed more evidence: “In our business, you will definitely see this from service providers like us. You see this through open positions on futures exchanges. You saw this when Blackrock announced that some of their funds will be available for use in Bitcoin futures.” He concluded:
I also think the market is maturing. There is more liquidity. The volatility has dropped by about 50% from 2017. Therefore, I believe that we believe that the composition of this investor base (the reason driving the market up today) is fundamentally different from the situation three years ago.
Do you agree with Fidelity’s Jessop about the future of Bitcoin? Let us know in the comments section below.
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