The crypto community has been buzzing with excitement in recent months, and rightfully so. Asset managers and payment giants alike have been announcing support for cryptocurrencies. As more and more institutions enter the crypto space, the need for clearer rules regarding digital assets is vital. This is because the current opaque regulations are keeping some institutional investors at bay.
One such institution is Charles Schwab, one of the largest banks and brokerage firms in the United States.
Charles Schwab Is Waiting For Greater Regulatory Clarity Before Making A Serious Foray Into Crypto
According to a report by Reuters, Schwab CEO Walt Bettinger revealed that the company is looking at the crypto market closely but will not add any crypto capabilities on its platform before there is regulatory clarity.
“We would like to see more regulatory clarity. And if and when that comes, you should expect Schwab to be a player in that space in the same way it has been a player in other investment opportunities across the spectrum.”
Regulatory clarity in the cryptoverse is needed now more than ever. Fortunately, the situation could soon change thanks to the newly-appointed chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler. During his Senate confirmation hearing last month, Gensler postulated that cryptocurrencies have been a catalyst for change. He went on to say that he would work with his colleagues to “promote the new innovation, but also, at the core, ensure investor protection.”
Bettinger notes that when the multinational financial services giant finally makes cryptocurrency available to its clients, it will be “highly competitive, we will be disruptive, and we will be client-oriented”.
Notably, Charles Schwab has previously been dismissive of crypto assets, with one of the company’s spokesmen telling investors to regard cryptocurrencies as “purely speculative instruments”. This makes sense to some extent given the relatively small size of the crypto market as compared to legacy trading services. Nonetheless, regulatory clarity and the ever-evolving market developments might force its hand.
So will Charles Schwab dive into crypto? It’s only a matter of time.