Credit Suisse’s former executive says the US regulatory clarity will start a new bull run

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The cryptocurrency industry has seen a massive bull run in the second half of 2020 and throughout 2021, finally ending the year with the start of the new cryptocurrency winter. After peaking in November 2021, cryptocurrency prices have started to plummet and have never stopped. Now, almost a year later, investors are starting to wonder when the next bull run will begin, and some experts are offering their opinion on the current situation.

One of the experts is CK Cheng, former head of risk at Credit Suisse, a well-known merchant bank. Cheng, who left Credit Suisse in July 2021 to co-finance a new crypto hedge fund, believes the next big rally will need a specific trigger: regulatory clarity in the US.

Is regulatory clarity coming?

The move that will trigger the next bull run, at least according to Cheng, is a pretty strong requirement. However, on the plus side, he added that he expects the US to adopt cryptocurrency regulations in early 2023. He says there are strong regulatory efforts currently underway in the country that will soon open doors between the cryptocurrency industry and traditional finance.

If true, his prediction will most likely come true. After all, the United States is full of institutional investors, entrepreneurs and others who are just waiting for the country’s regulators to give the green light before starting to invest large sums of money in the world of cryptocurrencies. The cryptocurrency community is well aware of this too, so any sign of cryptocurrency-related laws and regulatory clarity will most likely spark massive retail investment.

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Combined with institutions finally getting the green light to switch to cryptocurrencies, this is sure to spark some pretty positive pricing behavior. The phase has already been prepared for institutional engagement, as there are numerous companies offering custody services, crypto wallets, and generally easy ways for institutions to enter the crypto industry as soon as they decide they are ready for such a move. .

Institutions await clarity and regulators are trying to deliver results

One example is one of the largest wealth managers in the world, BlackRock, who partnered with Coinbase just last month to offer access to Bitcoin and other cryptocurrencies using Coinbase Prime. Cheng also noted that there is tremendous interest among institutional investors and some of them aren’t even waiting for regulations – they’re moving into the cryptocurrency world right now.

Some may do so while trying to keep a low profile while others have been more outspoken about it, but are preparing to enter the industry as we speak. He also believes that US President Joe Biden may have unwittingly given a signal to traditional investors earlier this year.

The bottom line is that institutions don’t care about things like liquidity, scalability, volatility, and the like. All that matters is whether the regulations are clear enough or not, and if upcoming laws meet this requirement, the cryptocurrency industry will soon receive a rather massive injection of institutional funds.


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