The United States Securities and Exchange Commission’s (SEC’s) devoted scrutiny actions into the digital currency industry have received various reactions from investors, most of which seem to be in its favour, as interpreted by a recent survey.
An estimated 60% out of the 564 assessment participants in the recently carried out MLIV Pulse survey suggested that they perceive the tough legal actions in digital assets as a promising signal.
35% of retail investors and 44% of major whales demonstrated a lower probability to invest in crypto assets citing the recent enforcement strategy in the crypto industry.
Contrastingly, 65% of retail investors and 56% of major whales signified a higher chance of investing, noting that the recent clampdown may bring out more of the positive features of the industry.
The US watchdogs have intensified their investigatory actions in recent months with several bankruptcy situations at hand from firms like Three Arrows Capital and Celsius Network.
Many investors seem to read the SEC’s “regulation by enforcement” strategy differently from lawmakers and certain digital currency players, who criticize this approach to digital currency supervision.
Chris Gaffney, the chairperson of the work markets at TIAA Bank urged that a tightened regulatory pattern for investment prospects is more likely to attract major whales to get into digital currency investment.
“The more they can get crypto out of the Wild West and into traditional investing, the better off its going to be.”