What Does Evolving Regulation Mean for the Future of Crypto?

There is concern that regulation could negatively affect the sector by stifling innovation and undermining the decentralised nature of crypto assets - which is one of its key components. Some argue that investors should welcome clearer legislation in order to stabilise an otherwise volatile market, increase security and alleviate some of the fears that have, until now, prevented wider adoption of crypto in the mainstream. Regardless of this lively debate, regulation is imminent and it is essential that investors are prepared. 

With a total market value of over $1 trillion and increasing investment from mainstream financial institutions, crypto assets can no longer be ignored by regulators. Although this inspires fear amongst some crypto enthusiasts and investors, effective regulation could help finally bridge the gap with traditional finance markets by reducing speculation, attracting more long-term investors. This could make the markets less vulnerable to outside manipulation, increasing investor confidence and in turn offering greater value over time. However, fears that regulators don’t fully understand crypto and their laws will reflect this, doing more damage to the sector than good. 

This panel discussion was organised by the Financial Times, in partnership with Grayscale, on the side-lines of WEF Davos. In this discussion our expert panel explored what the future of crypto regulation looks like, the challenges it will present crypto investors and the potential benefits it could offer the market.  

 Regulatory Protection

What protections do crypto investors need? How should regulators ensure they offer this security?

 Global Regulation

How important is it that global markets adopt similar legislation to ensure that markets don’t become siloed and unnecessary red tape prevents financial growth?

 Regulation Preparation

What can traditional investment executives do to prepare their portfolios for incoming regulation? 

 Investor-Regulator Cooperation

How ought legislators and investors work together to establish effective regulation without stifling growth and innovation?

 Spot Crypto ETFs

How could legislation pave the way for spot crypto ETFs by allaying fears of manipulation by unregulated platforms?

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