Has Wall Street missed the boat on cryptocurrencies?
May 2, 2021. Summarized by summa-bot.
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Monitors display Coinbase signage during the company's initial public offering (IPO) at the Nasdaq MarketSite in New York, U.S., on Wednesday, April 14, 2021. Coinbase Global Inc., the largest U.S. cryptocurrency exchange, is set to debut on Wednesday through a direct listing, an alternative to a traditional initial public offering that has only been deployed a handful of times. Photographer: Michael Nagle/Bloomberg via Getty Images
Big banks have changed their attitude toward cryptocurrencies in recent years, going from dismissive to cautiously interested. But Wall Street still isn't fully embracing digital currencies.
New York (CNN Business)Big banks have changed their attitude toward cryptocurrencies in recent years, going from dismissive to cautiously interested.
Cryptos are no longer condemned as a bizarre alternative investment, and even central banks around the world are considering issuing digital currencies.
Cases like that, paired with the huge regulatory uncertainty for other big cryptocurrencies, make it hard to get involved for banks, which are regulated to the bone.
"Undoubtedly, the Ripple action was an example of the regulatory dark cloud that could potentially hang over cryptos other than Bitcoin or Ether," Ashley Ebersole, a partner at law firm Bryan Cave Leighton Paisner and former SEC attorney, told CNN Business.
Goldman Sachs CEO David Solomon said on the company's earnings call in April that the rapid rise of cryptocurrencies signals that "there will be significant disruption and change in the way money moves around the world. "
Digital currencies should best be thought of as a new financial product banks are getting involved with, Ebersole said.
New Delhi's intervention has put the social media companies in a difficult position in one of their biggest markets, wedged between their users and a government that recently introduced new rules that could make them liable for not removing controversial posts.