It was Mike Novogratz who sparked quite the stir in the cryptocurrency community last week, announcing that Larry Fink, CEO of BlackRock (BLK), had undergone the process of “orange pilling,” typically used to describe a bitcoin non-believer’s transformation into a believer. According to Novogratz, Fink isn’t just another convert; he is possibly “the most important thing that happened this year in bitcoin.”
The statement reverberated through the crypto markets because BlackRock is more than just a bitcoin believer. Back in June, they applied to list a spot bitcoin exchange-traded fund (ETF) in the U.S. The move signalled a potential thaw in the previously icy SEC approval process for such a fund, and Novogratz argued that as BlackRock steps into the spotlight, we enter an “adoption cycle” for the cryptocurrency industry.
But for all the optimism, let’s not forget: the path to this so-called “adoption cycle” is still fraught with significant obstacles. The U.S. Securities and Exchange Commission has rejected multiple applications to list spot bitcoin ETFs. Critics argue that this policy undermines the mainstream adoption of cryptocurrency.
Back in BlackRock’s corner, they appear ready to tackle this challenge head-on. Their application included a “surveillance-sharing” agreement, a measure that seeks to guard against market manipulation and which could potentially sweeten the deal for SEC officials. This was a tactical move that spurred other asset managers into action, refiling applications with similar agreements.
Novogratz also mentioned Ripple’s recent partial victory over the SEC in their ongoing legal feud. To him, this marked another win for the crypto community as it showcased the ambiguity of the rules. The judge ruled against the SEC’s long-held view that the sale of a href=/?s=xrp>XRP tokens through exchanges and algorithms constituted investment contracts, indicating that the boundaries of cryptocurrency regulations are anything but clear.
However, as this new dawn approaches, with giants like BlackRock entering the fray, the path towards mainstream crypto adoption still remains a contentious one. It’s not just a question of belief but a battle of regulatory acceptances, legal uncertainties and the need for mechanisms to ensure market transparency. Are we ready for this? The ball, it seems, is in SEC’s court.
Source: Coindesk
