Ken Griffin – Founder and Chief Executive Officer at the multinational hedge fund Citadel LLC – stated that his organization will start offering cryptocurrency trading services only if there is “regulatory clarity.” However, he is not keen on the asset class, opining that it threatens the strength of the American dollar.
Citadel Can Jump on The Crypto Bandwagon
During a recent interview, billionaire Ken Griffin pointed out the necessity of imposing a regulatory framework on the cryptocurrency industry. Citadel’s founder vowed to offer digital asset services to customers due to the increasing demand, but only if watchdogs implement clear regulations. Nevertheless, he still remains skeptical about the digital asset space.
“We don’t trade crypto because of the regulatory uncertainty. It will become a far more competitive market when there’s regulatory clarity and that would be good…I would trade it because it would meet the needs of our brokerage partners who want to have a tier-one firm making prices.”
The American entrepreneur praised the SEC, and especially its Chairman – Gary Gensler, for their stance on the matter.
“I really believe that Chairperson Gensler is spot-on on the need to have thoughtful regulation around cryptocurrencies.”
Recently, the Commission’s Chairman admitted his affection to the market but asserted he would work towards enhancing investor protection from potential scams and fraudulent activities. He further outlined that the crypto industry needs to go under the jurisdiction of the SEC.
While Citadel LLC’s involvement with digital assets would wait until a regulatory framework is imposed, this is not the case with numerous banks and hedge funds that had already jumped on the cryptocurrency bandwagon.
The two oldest American banks are such examples. Bank of New York (BNY) Mellon announced at the beginning of the year that it would be offering crypto-related services. More specifically, it would hold, issue, and transfer bitcoin (BTC) and other cryptocurrencies on behalf of its institutional clients. State Street Corporation followed suit and enabled digital asset trading through its infrastructure.
In April, Brevan Howard invested $84 million in cryptocurrencies, representing 1.5% of its $5.6 billion capital.
It is worth noting that a recent survey revealed that 98% of hedge fund CFOs expect to invest in the digital asset market in the next five years.
Why Is Griffin against Crypto?
According to the billionaire, people spend a significant amount of time and energy on cryptocurrencies. Instead, they could allocate those resources into something more beneficial for the USA:
“I wish all this passion and energy that went into crypto was directed towards making the United States stronger.”
As a keen proponent of the American dollar, Griffin opined that digital assets, particularly bitcoin, would harm the fiat currency. He went further, saying that it is a “Jihadist call” that some don’t believe in the dollar:
“What a crazy concept this is? We as a country embrace so many bright young talented people to come up with a replacement for our reserve currency.”
Featured Image Courtesy of FNLondon