The former chief at Barclays, Bob Diamond, considers digital assets growth would soon become a natural element of the rapidly digitized world. He acknowledged that the pacy growth is unsurprising, given that most asset management firms have expanded their forays into the crypto space.
Diamond Revisits Crypto Ecosystem as Thriving
Diamond revealed in an interview hosted by CNBC during the Squawk Box his admiration for the involvement of mainstream firms in the crypto ecosystem. On Wednesday, June 21, his pronouncement celebrated BlackRock’s achievement in digital assets. In particular, he revisited his previous engagement with BlackRock to facilitate investment in Circle, the issuer of today’s largest stablecoin USDC.
Diamond revisited the April 2022 events when Circle realized $400 million in a round steered by BlackRock. Its leadership aligned with its existing cash reserve management profile backing an estimated $29 billion token. He added BlackRock’s involvement in digital assets was inevitable, a reason the Bitcoin ETF filing is unsurprising.
BlackRock Likely to Secure Approval from SEC for Bitcoin Sport ETF
Diamond references the move by BlackRock to apply to the US Securities and Exchange Commission (SEC) seeking approval for the Bitcoin Sport ETF. The application is considered an investment vehicle that allows consumers and businesses to acquire shares supported by fixed bitcoins that fund issuers and partners exercising ownership rights.
The filing of Bitcoin Spot ETF will benefit US investors who have desired the approval of bitcoin-denominated spot ETFs, given the past failures. The move alongside labeling Bitcoin as a commodity is propelling the current price rally to exchange hands near $30000.
Also read:Also, the move by SEC to label altcoins as security in the charges filed against Binance and Coinbase raised Bitcoin dominance above 50% to realize June 2021 figures. The continued crackdown by US regulators against the altcoins reminiscent of the cease order on BUSD stablecoin will propel Bitcoin dominance closer to 80%.
SEC Enforcement Actions are Eroding the Digital Assets Ecosystem
Diamond considers crypto a broad element that, if one narrows to the source, digitization fits into the current activities, thus retracing to the natural course. The banker holds that the broader digital assets ecosystem has been troubled since the SEC unveiled the charges against Binance and Coinbase. The authorities allege securities law violations with several of the top tokens offered by the exchanges labeled as unregistered securities.
Diamond holds that formulating a clearer regulatory framework is a mandatory input for digital assets to optimize their potential. He supports enforcement actions as a necessary intervention for parties contravening the legal provisions.
The ex-Barclays chief challenged regulators to prioritize clearer regulations. Accomplishing strong regulations would attract institutional investors and strong banks into the crypto space as long-term partners.
Thriving Crypto Industry Defies Regulators’ Projected Span
Diamond echoes the April remarks by the head of digital policy at Barclays, Nicole Sandler. The executive lamented that the policymakers dismissed the need to regulate crypto projects believing they would die a natural death.
Sandler blames the policymakers for the increased enforcement actions in an attempt to wake up to the digital assets order. She alleges later arrival by policymakers is an intentional failure by policymakers. Despite supporting digital assets, the Barclays executives ruled out owning bitcoins.
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