Institutions Will Flock to Cryptocurrencies Once Regulation Is Clearer
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Speaking at the Messari Mainnet conference on Thursday, Chuck Mounts, global head of DeFi at S&P, said institutional capital will flood into cryptocurrencies as regulation becomes clearer.
According to Mount, cryptocurrency policies need to be clear, giving large institutional players and asset distributors more confidence and comfort to step in and start allocating money to the space.
An important sign, Mount said, would be legislative action on stablecoins, which he described as a way for institutional money to enter the digital asset and cryptocurrency space.
In addition to this, Mount believes that a risk assessment would also be helpful. “With policy clarity, I think it’s necessary to look for some risk assessment frameworks that they’re used to that both relate to their internal risk assessment capabilities and facilitate their communication with regulators,” he said.