Fidelity Investments Engages With Regulators To Integrate Crypto Assets – Bitcoin Regulation News

The chairman of Fidelity Digital Assets, the crypto arm of Fidelity Investments, says crypto is “its own unique asset class.” He revealed: “We and others are very engaged with regulators… to bring this asset class into the mainstream.”

Fidelity sees long-term interest in crypto assets among institutional investors

Fidelity Digital Assets Chairman Tom Jessop shared his take on the future of cryptocurrency in an interview with Yahoo Finance on Thursday. He also discussed his company’s efforts to engage with regulators to bring the asset class into the mainstream.

Fidelity is one of the largest traditional fund managers. It has around 37 million individual investors, 83.4 million accounts receivable and $ 10.4 trillion in assets under management at the end of March. The company established Fidelity Digital Assets in 2018 to provide cryptocurrency products and services, including bitcoin, to institutional investors.

“What’s obvious is two things,” Jessop explained:

This is seen as its own unique asset class with its own fundamental drivers, which differ from other financial assets… And perhaps more importantly, what we are seeing is continued buying interest over a longer period of time. period of time.

The executive explained, “We see clients digging into these issues, really understanding not only the technology, but also the application of these assets in their portfolios.

Jessop then referred to a Fidelity Digital Assets survey conducted earlier this year, which found that around 70% of respondents planned to have an allocation to digital assets within the next five years.

Noting “a cross section of institutions ranging from family offices and hedge funds, to much more traditional institutions,” the executive said:

We therefore continue to see interest and slow and steady progress towards the integration of this asset class.

Recently, Fidelity Digital Assets announced plans to increase its workforce by around 70% as demand for cryptocurrency services from institutional investors remains strong.

Regarding crypto asset legislation, the Fidelity executive described that “regulation and regulatory clarity is still an issue for many investors who want to ensure that there is a solid basis for regulation, or at least one direction of travel before committing significant space assets. “

The US government recently stepped up efforts to regulate the crypto industry. The chairman of the U.S. Securities and Exchange Commission (SEC) last week outlined his plans to regulate crypto assets and protect investors. The U.S. Commodity Futures Trading Commission (CFTC) has also clarified its jurisdiction over crypto assets. Meanwhile, the Biden administration has become more interested in stablecoins and the taxation of crypto transactions.

“We think the attention is positive,” Jessop described US crypto regulatory efforts, but noted that “there may be worrying things that are said from time to time.” The head of Fidelity Digital Assets detailed:

We and others are very engaged with regulators and continue to educate them on how to bring this asset class into the mainstream and into a regulatory framework that captures many of the principles that apply to other asset classes. active.

What do you think of the words of the president of Fidelity Digital Assets? Let us know in the comments section below.

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