Expect the first crypto regulation in 2022 after years of preparation

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FTX digital currency exchange CEO Samuel Bankman-Fried said 2022 is ripe for the introduction of the first batch of regulations for the cryptocurrency space.

Speaking to Bloomberg Technology, Fried acknowledged that due to the complexity of the industry, the settlement would not come in one batch, but the market should expect some activity after years of preparation.

He noted that despite the regulatory outcome causing uncertainty for the industry, investors should adopt this move as it is beneficial in the long run.

Fried believes the sector could be affected in the short term, but standard regulations will boost confidence in the space, attracting more investors.

“I don’t think it’s going to come all at once, but I think there’s a lot going on this year. We’ve already seen a lot happen in the past year, but a lot of it has been preparatory.<…> In the United States, lawmakers are investing heavily in their knowledge of the sector. I think you’re probably going to see the first batch come out in 2022, ”Fried said.

Impact of crypto regulations

With Bitcoin gaining around 60% in 2021, the executive said regulatory clarity should lead to investor optimism for the asset. At the same time, Fried believes that if there is a standard regulatory framework globally, Bitcoin and the market in general are likely to thrive.

He noted that the regulations would also indicate the extent to which institutional investors place their money in the crypto space. However, he stressed that institutions would likely invest more in cryptocurrencies, but warned that their involvement could span several years.

Fried also revealed that large financial institutions, including banks and pension funds, have started to explore the sector.

Although the executive expressed optimism about specific cryptocurrencies, he previously cautioned investors against digital currencies to avoid. As previously reported by Finbold, Fried cautioned against cryptocurrencies driven by the social media hype, stating that they are crashing the hardest.

He also said cryptocurrencies with a large allocation to anonymous founders should be avoided.

Watch the full interview below:

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