The CEO of crypto exchange FTX US is weighing in on which policy moves and infrastructure changes could help the crypto markets rebound.
In a new thread, Brett Harrison explains how both regulatory clarity and improved trading options might provide the kind of backbone necessary to renew people’s faith in crypto investing.
“Some things that could slow market contagion and quicken recovery:
-clarity from US regulators.
-more robust US crypto futures and options markets.
-US spot crypto ETFs [exchange-traded funds].
Harrison stresses how well-defined regulations would likely lure mainstream investors with large bankrolls into the digital asset space.
Regulatory clarity for US crypto exchanges and other digital asset providers would instill confidence for US institutional investors to continue betting on the long-term viability of the assets.
When it comes to futures and options trading, the FTX chief thinks strengthening how these investment vehicles are structured might also appeal to institutional capital.
More robust crypto futures and options markets in the US would also help bring in institutional capital, dampen volatility by giving access to capital-efficient hedging, and make it easier for firms to gain exposure to the asset class without needing to handle spot.
Harrison concludes by highlighting the broader benefits that would arise if the government allowed the first-ever spot-priced crypto ETF to start trading.
Spot ETF approval in the US would bring efficient price discovery and cheap means of crypto exposure to one of the most regulated and well-understood asset classes in the world.
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