Institutional investors and wealth managers are anticipating more lenient regulation from the US Securities and Exchange Commission (SEC) for digital assets in the coming year, according to research by London-based digital assets hedge fund manager Nickel Digital Asset Management.
The research found that 68% of those surveyed expect the SEC to ease regulations, while only 35% foresee stricter controls.
The study highlighted that more than half of the respondents expect increased clarity and guidance from the SEC, and 44% believe the regulator will adopt a more constructive approach, influenced by political changes. Nickel’s research, which included participants from the US, UK, Germany, Switzerland, Singapore, Brazil and the UAE, indicated strong support for the SEC’s role in the digital asset sector.
90% of institutional investors and wealth managers regard the SEC as an effective regulator of digital assets, with 85% perceiving it as supportive of the sector. Only 5% said they view the SEC as unconstructive or overly restrictive. Additionally, 80% shared that they believe the SEC has been clear in distinguishing between securities and non-securities within the digital asset space.
Digital assets: The race to regulate digital assets
The survey also revealed that nearly 73% of respondents feel that the SEC’s recent clarifications on security token offerings have significantly impacted the sector. This is more than the 42% who pointed to guidelines for initial coin offerings. Regulatory clarity from the SEC was deemed crucial by around 80% of participants, and 83% said they believe SEC regulatory actions will positively impact innovation in the digital asset space.
However, only 35% of those surveyed said SEC regulations significantly influence their investment decisions in the digital asset sector, with 55% reporting a moderate impact and 10% noting a slight impact. Anatoly Crachilov, CEO and founding partner at Nickel Digital, commented that tough regulatory actions on platforms like FTX and Binance have bolstered confidence in the sector. He added: “The survey reveals that institutional investors and wealth managers are now expecting more lenient regulation of the sector by the SEC after a period of intense scrutiny. It is reasonable to assume that a more accommodating regulatory environment will boost the growth of the asset class in the US.”
