Institutions 'moving very, very fast' into crypto — Coinbase exec – Cointelegraph
D’Agostino also said the recent battles between the SEC and CFTC are a good thing for crypto because it indicates that it will be a “vitally important piece of market structure” moving forward.
Institutional adoption of digital assets is “moving very, very fast,” and much faster than the rate nascent industries ordinarily develop at, says Coinbase senior adviser John D’Agostino.
In an Oct. 18 interview with SALT moderated by Anthony Scaramucci, D’Agostino said that new asset classes often take time to develop, as “institutional inertia is a very real thing” and “there’s a lot of switching costs associated with adding new assets” but that this hasn’t been the case with crypto:
As for what may have slowed institutional adoption, D’Agostino said that U.S. regulators have been “complacent” to the point that it harmed “the growth of the technology.”
But interestingly, D’Agostino sees the “bifurcated regulatory regime” between the U.S. Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) “as a good thing” because “nobody fights over something that is going to go away.”
Related: Wealth managers and VCs are helping drive institutional crypto adoption — Wave Financial execs
D’Agostino was adamant that a crypto-related exchange-traded fund (ETF) will eventually be approved, despite the SEC’s ongoing rejections:
Co-founder and CEO of Singaporean crypto exchange Coinhako Yusho Liu recently told Cointelegraph that he expected institutional interest to keep growing as the industry matures.
“We believe institutional flows into the market will continue to grow and serve as a crucial driver for future crypto innovation and adoption,” he said.