Long-Term Adoption of Crypto Depends on Regulation, Says Coinbase Exec

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Cryptos recent rally is a beacon of hope for the industry, but its lasting presence will depend on clear regulatory safeguards, according to Tom Duff Gordon, Vice President of International Policy at Coinbase (COIN).

Joining CoinDesk TVs First Mover live from the World Economic Forum (WEF) at Davos 2023, Gordon said crypto has the potential for mainstream adoption, but that will depend on regulation which can then generate retailer confidence. .

2023 for us could be a real inflection point in politics and a regulatory framework could be one of those things that helps accelerate the accelerator side of the crypto downturn, Gordon said.

Broader crypto adoption has been mired by the fall of bankrupt crypto exchange FTX, which Gordon says has led some policymakers to feel reluctant to engage.

One thing is clear, Gordon said, is that the fall of crypto exchange FTX has put crypto on every policy maker’s radar. He predicted that mainly guardrails could be put in place by the G20.

Read more: After FTX, Crypto Firms No Longer Benefit From Doubt on Capitol Hill, Congressman Says

Ensuring basic safeguards are reasonable and moderate before introducing crypto into the existing financial system will be necessary, he said.

Well, see more institutional investors getting into crypto, but I think we’ll see more traditional financial banks start exploring this space as well, Gordon said.

The efforts come as Coinbase seeks to manage a 20% workforce reduction and a $100 million settlement with the New York State Department of Financial Services (NYDFS).

With recession fears and a softer landing, it may finally be time for crypto to be recognized by policymakers, he said.

Read more: As crypto crashes, Coinbase bets big on Europe

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