“We believe the regulatory picture is now improving — best evidenced by Coinbase and Circle ‘running towards’ regulation. We are basing this on the notion that Coinbase and Circle would only take these actions if such was the case.”
“We believe both companies would only make these moves if their perception of regulatory risks in crypto was improving,”
Many stringent regulations and other rules by the SEC have been a headwind for bitcoin prices this year. Prices fell below $10,000 in March after the agency said it would require digital asset exchanges to register with the agency and have struggled to recover since.
Currently, BTC price is down from its January price by about 45 percent. The digital currency was trading near $7,689 as of 2 p.m. ET Thursday.
Lee and others in the space have argued that uncertainty from regulators has held back demand for cryptocurrency and prevented institutional investors from entering the market.
On Wednesday, in an interview with CNBC, SEC Chairman Jay Clayton said while bitcoin is not a security, tokens from initial coin offerings are. The CFTC, on the other hand, regulates them as commodities.
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