Skip to main content

Jefferies’ Equity Strategist Expects Accommodating US Crypto Regulation Unlike China’s Authoritarian Model

Jefferies Equity Strategist Expects 'Accommodating' US Crypto Regulation Unlike China's 'Authoritarian Model'

The head of global equity strategy at Jefferies, an investment bank and asset management firm, says that cryptocurrency regulation in the U.S. would “ultimately be very positive” for bitcoin or other crypto assets. It will also be more accommodating than China’s authoritarian approach to crypto regulation.

US Regulation Would ‘Ultimately Be Very Positive’ for Mass Adoption of Bitcoin, Cryptocurrencies

Christopher Wood, Head of Global Equity Strategy at Jefferies, discussed cryptocurrency regulation in his most recent weekly research note, Greed & Fear.

Jefferies is a diversified financial services company engaged in investment banking and capital markets, asset management, and direct investing. The company claims to be “the largest independent, global, full-service investment banking firm headquartered in the U.S.,” according to its website.

Wood reportedly said that the regulatory response to cryptocurrency in the U.S. will likely be more accommodating than “China’s authoritarian model” given the fast deteriorating state of the U.S.-China relations.

He expects the U.S. Securities and Exchange Commission (SEC) to come up with a definitive regulatory roadmap, citing the new SEC chairman, Gary Gensler, who is pushing for a regulatory framework on cryptocurrencies. Gensler has repeatedly said that crypto exchanges need more regulation, asking Congress to weigh in. Wood opined:

That would ultimately be very positive since bitcoin or other crypto assets can only really fulfill their network potential, in terms of mass adoption, if they become part of the system.

Recently, China has been cracking down on bitcoin mining and the People’s Bank of China (PBOC) has reminded banks in the country that they are prohibited from engaging in any crypto-related activity. According to industry estimates, over 90% of China’s bitcoin mining capacity has been shut down.

Wood explained that China does not want its citizens to own cryptocurrencies, elaborating:

This is in part because of the clear ability to use so-called stablecoins like tether to circumnavigate the closed capital account. It is also, more importantly, because China does not want any competition when it launches the digital renminbi nationally, most likely in the fourth quarter of this year.

China is actively working on a central bank digital currency (CBDC) and has been testing the digital yuan in various cities. Over 3,000 ATMs in Beijing now offer digital yuan withdrawals. Some analysts believe that China’s absolute control over its state-backed digital currency will boost demand for cryptocurrencies.

Wood detailed: “Certainly, the decentralized aspect of blockchain technology, which is so appealing to libertarians opposed to fiat currencies as state monopolies, is the complete antithesis of China’s collectivist system. The People’s Republic of China clearly understands this. This is certainly a far more important issue to Beijing than the carbon generating aspects of bitcoin mining.”

Jefferies trimmed gold exposure in favor of bitcoin in December last year in its recommended portfolio for U.S. dollar-denominated pension funds. “The 50% weight in physical gold bullion in the portfolio will be reduced for the first time in several years by five percentage points with the money invested in bitcoin,” Wood explained at the time. The firm has maintained a 5% BTC holding in the portfolio.

The SEC and the CFTC recently cautioned investors about funds investing in bitcoin futures. While Gensler has pushed for cryptocurrency regulation to protect investors, the SEC has left bitcoin and cryptocurrency off its regulatory agenda this year.

Do you agree with Chris Wood on bitcoin and crypto regulation? Let us know in the comments section below.



from Bitcoin News https://ift.tt/3wYhRM5

Comments

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli