Four industry titans are joining forces to lobby US regulators for solid support in the booming cryptocurrency and digital asset space.
Financial conglomerate behemoth Fidelity Investments, payments app Square, crypto exchange Coinbase, and investment firm Paradigm have formed a new entity called the Crypto Council For Innovation. The council aims to make sure that US policymakers grasp the importance of cryptocurrencies and, in turn, help the space flourish.
Speaking to the Wall Street Journal, Paradigm chief Fred Ehrsam compared the blossoming crypto industry and its need for regulatory attention to the beginning of the internet era.
“It’s in its very early stages and, much like the internet (once was), it’s very fragile while it’s in that stage… It’s challenging because policymakers want to balance risk and reward, and even people who spend time in this space would struggle to predict where this will go in the coming decade.”
The newly formed council signals a milestone in the space amid surging institutional interest and a growing number of investors who are grappling with a lack of regulatory clarity. In an interview with CNBC, Goldman Sachs CEO David Solomon says he’s anticipating an ‘evolution’ of how Washington deals with digital assets as big clients continue to ‘demand’ access to the crypto space.
“There are significant regulatory restrictions around us and us acting as a principal around cryptocurrencies like Bitcoin. But we can help the clients facilitate custody positions in digital assets, and as our clients have demanded to be involved in this space, we continue to find ways that we can support our clients and that’s the lens that we’re really looking for.”
“I think this is a space that is evolving… I think there will be a big evolution in how this evolves in the coming years.”
While it’s unclear as to whether or not the new pro-Bitcoin trade group will include more participants, all four founding members are prominent supporters of cryptocurrency.
Fidelity recently filed for a Bitcoin ETF, Square is the third-largest corporate holder of BTC, Paradigm is a crypto-focused investment firm, and Coinbase is the largest crypto exchange in the US.
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