Is crypto winter coming to an end?
From the terra-luna collapse to FTX, all the way through to the recent regulatory work in the US – it’s been quite a year in crypto.
That’s why Financial newscaught up with Tim Grant, head of Emea at Galaxy Digital, and Ari Redbord, head of legal and government affairs at TRM Labs, on April 20 Barron’s liveto take stock of what has been a troubled 12 months and look at what is coming next.
Grant was vocal in his support of recent statements by Coinbase CEO Brian Armstrong, who recently suggested that the exchange giant may leave the US if the country’s regulators don’t take a kinder stance on crypto.
“He’s saying what we’re all thinking,” the Galaxy director said. “Our customers tell us, ‘I don’t know if I want to meet an American entity.’ When was the last time in any asset class that we really talked in these terms? It’s very unusual and the implications are very real.”
“We’re definitely thinking about our footprint, Coinbase certainly is, and we’re hearing a lot of chatter about others thinking about it.”
It’s a strong indication of where US firms are right now, and illustrates how the divide between crypto-skeptics, such as Securities and Exchange Commission chief Gary Gensler, and more sympathetic regulators in other jurisdictions could shape the digital asset economy for years to come.
Meanwhile, the pair was bearish on the crypto’s recent partial price rally. Grant said analysts would be “crazy” to call time on the crypto winter, while Redbord added: “We’re still in a moment where there’s a lot of pain.”
European crypto regulation is here, plus Galaxy sees a UK ETP
However, there was optimism on the EU’s recent vote to ratify its landmark Markets in Crypto Assets regulation, which Redbord described as “hugely important”.
“I have spent a good deal of time in Brussels with [policymakers], and they all see this as a business advantage for the EU compared to the US and the rest of the world. It is very important, said Redbord.
Grant added: “Britain really needs to catch up now. They have been saying the right thing since about a year ago when Rishi [Sunak] – when he was chancellor – said: ‘We want to be a crypto hub’.
“There’s only so long you can keep saying that and not actually get the Financial Conduct Authority to develop its guidelines… We want to see that turn into policy change, which then allows us to do some things, such as a UK exchange-traded product . That would be fantastic. Right now you just can’t and the UK has really got the opportunity to eclipse the US on things like that.”
Click here for the full transcript, or here to listen back to the podcast.
Copper strengthens the leadership team
Copper has hired new finance, technology and legal chiefs in a trio of executive appointments following a period of upheaval at the crypto custody firm.
Sam Brown, who was interim general counsel, has secured the permanent job, replacing Carly Nuzbach Lowery, a former Barclays and Linklaters lawyer who United Nationsdisclosed had quit after less than a year in the job.
Sam Goh joins as CFO from technology security firm Onfido, while Stefano Maestri has been appointed chief technology officer.
The appointment limits a turbulent period in the company. Copper has laid off about 15% of its workforce in recent months, in a series of job cuts that saw workers abruptly locked out of company computers with little warning.
Further reading
Galaxy Digital to build UK banking team as US crypto crackdown bites
“Crypto is dead in America,” says longtime bitcoin bull Chamath Palihapitiya (CNBC)
What the UK’s new crypto rules could mean for traditional finance
Bitcoin ‘halving’ due next year spurs predictions of rally in token above $50,000 (Bloomberg)
Why Coinbase CEO Brian Armstrong is thinking about a US exit
“Not a warm and fuzzy guy:” Gary Gensler’s past sheds light on his firm stance on crypto (DL News)
To contact the author of this story with feedback or news, email Alex Daniel
