The CEO of BitGo, Mike Belshe, recently discussed the current state of U.S. cryptocurrency regulations in an interview with CNBC. Belshe expressed his belief that regulators in the U.S. have taken a strict approach towards the crypto industry, which has led to traditional financial firms largely staying on the sidelines. While there are a few exceptions, such as Blackrock’s ETF, Belshe pointed out that overall, these firms are focusing on complying with regulations.
Opposition from Industry Players and Clearer Regulatory Pathways
Belshe also noted that U.S. regulators have faced opposition from key industry players, likely referring to the ongoing cases involving Binance and Coinbase. He contrasted this with regulators outside the U.S., who he believes provide clearer pathways for regulation. Belshe emphasized that market downturns could create demand for derisked market platforms, presenting new opportunities. He suggested that crypto firms can develop the necessary technology while traditional firms work effectively with regulators.
The Potential for a Strong U.S. Bitcoin Market
According to Belshe, the current regulatory challenges could pave the way for the emergence of a strong Bitcoin market in the U.S. He expressed confidence that this development is not far away. Belshe highlighted BitGo’s Go Network as a solution to address issues that have led to failures in the crypto industry, similar to those experienced by Silvergate Bank and FTX. The Go Network allows institutional investors to store their crypto assets with a qualified custodian while keeping them liquid and accessible.
Partnerships and Potential Future Collaborations
Belshe mentioned that several significant players in the crypto industry, including Bitstamp, INX, and Gate.io, have joined the Go Network as exchange partners. When asked about the possibility of BitGo partnering with EDX Markets, which is backed by Wall Street, Belshe confirmed that it is a potential consideration. Interestingly, EDX recently switched its custodial partner from Paxos to Anchorage.
As one of the largest crypto custodians, BitGo currently holds over $64 billion in digital assets under custody as of November 2021. With the evolving regulatory landscape and opportunities for collaboration, the future of the U.S. cryptocurrency market, particularly Bitcoin, appears promising.