A couple of weeks ago the Winklevoss brothers were shot down by the SEC which was not only a major loss for them but for the entire crypto community. However, as some crypto enthusiasts sit back and build up resentment for the market watchdog, the bitcoin billionaires are working even harder to satisfy their more dependent clients—retail customers. Tyler Winklevoss, in particular, believes that although Wall Street is serious in cryptos, it will take time for them to adopt.
Wall Street Is Sitting On The Sideline Until The SEC Clarifies Its Position
In the last few years, as cryptocurrencies have risen to create enormous wealth (and dropped to spoil such gains), market watchdogs have taken notes of how this might all effect standard markets and emerging ones as well. This has been the catalyst for regulatory agencies like the SEC to consider trying to classify cryptos that were securities. The SEC has also been reviewing Bitcoin ETF proposals from different companies such like the Winklevoss proposal and the CBOE proposal which recently the SEC postponed their decision to approve -a decision that proved costly for the market as cryptos dipped, bitcoin at the time of press was trading at $6,300 from a high of $7,100 a week ago when the SEC postponed the decision.
Regulations have been largely the reason that Wall Street is still standing on the sidelines of the crypto market as Tyler notes;
“Wall Street is taking cryptocurrencies seriously, however, the vast majority of Wall Street firms are still not participating in the cryptocurrency market, which remains primarily a retail-driven market… This will change over time, but it will take time.”
Wall Street wants to be sure before getting into the market that the SEC will not come in and introduce regulations that will send prices plummeting. It is no secret that cryptos are extremely volatile and negative regulations and bad news have in the past proven costly. However, when and should Wall Street’s big brands and investors get into the crypto market, they are the movers and shakers, and would possibly push the market to the next level.