Despite an uneven years in the crypto markets, many market participants are unperturbed about the long-term health of the sector, saying legal frameworks could restore confidence in the sector by 2023.
“Crypto will recover,” Katherine Dowling, general counsel at Bitwise Asset Management, told TBEN. “This is not the death of crypto.”
Given the belief of many that crypto is here to stay, it’s worth looking ahead. Crypto denizens certainly are – after the collapse of FTX, questions circulated about the future of crypto and what regulators would do next.
“There is no incentive for regulators to reduce their level of enforcement activity and recent events are likely to encourage them.” Joe Castelluccio of Mayer Brown
But disappointment over what the implosion of FTX represents is very hard to overstate, Yesha Yadav, law professor and director of diversity, equality, and community at Vanderbilt University, told TBEN. “The level of disillusionment and disappointment and feeling cheated by FTX is so deep because it was seen as one of the most compliance-friendly institutions in the crypto economy and one that would lead regulatory efforts.”
Now FTX is clearly the “poster child for everything that can go wrong,” Yadav said. The downfall sends regulators back to the drawing board. “Maybe they should do something different, more drastic and stricter in response to what happened.”
But what can we expect from regulators in 2023?
Regulators will finalize some of the proposals they’ve submitted, Alma Angotti, partner and global regulatory leader at Guidehouse, told TBEN. “I think there’s a realization that the industry is too big to keep ‘waiting and see’.”