Citadel Open to Crypto Services if There is Regulation

Ken Griffin, the founder and chief executive officer of Citadel LLC, a multinational hedge fund, stated that crypto trading services will only be offered if there is regulatory clarity. However, he was not enthusiastic about the asset class and believes it could threaten the strength the American dollar.

Citadel Open to Embracing Crypto

In a recent interview Ken Griffin, a billionaire, highlighted the need to establish a regulatory framework for the cryptocurrency industry. Citadel’s founder stated that he would offer digital asset services to customers in response to increasing demand. However, he said that only clear regulations will be implemented by watchdogs. He remains skeptical about the digital assets space.

“We don’t trade crypto because of the regulatory uncertainty. It will become a far more competitive market when there’s regulatory clarity and that would be good…I would trade it because it would meet the needs of our brokerage partners who want to have a tier-one firm making prices.”

Ken Griffin, Source: CNBC

American entrepreneur, Gary Gensler, praised the SEC and its Chairman for their position on the matter.

“I really believe that Chairperson Gensler is spot-on on the need to have thoughtful regulation around cryptocurrencies.”

The Chairman of the Commission recently admitted that he was passionate about the crypto market, but stated that he would do his best to protect investors from fraud and scams. He also stated that crypto industry must be under the SEC’s jurisdiction.

Citadel LLC would not be involved with digital assets until there is a regulatory framework in place, but this is not true for many banks and hedge funds who have already joined the cryptocurrency train.

These are the two oldest American banks. Bank of New York (BNY), Mellon, announced that it would offer crypto-related services at the start of the year. It will hold, issue and transfer Bitcoin (BTC), and other cryptocurrency on behalf of institutional clients. State Street Corporation also followed suit and made it possible to trade digital assets through its infrastructure.

Brevan Howard invested $84million in cryptocurrency in April. This represents 1.5% of its $5.6billion capital.

Notable is the recent survey that found 98% of CFOs of hedge funds expect to invest in digital assets in the next five year.

Is Griffin against Crypto?

According to billionaires, they spend a lot on cryptocurrency. Instead, they could use these resources to do more good in the USA.

“I wish all this passion and energy that went into crypto was directed towards making the United States stronger.”

Griffin, a strong supporter of the American Dollar, stated that digital assets, especially bitcoin, could harm the fiat currency. Griffin went on to say that the “Jihadist call”, that some people don’t believe that the dollar is real, was a reason for him to go further.

“What a crazy concept this is? We as a country embrace so many bright young talented people to come up with a replacement for our reserve currency.”

Featured Image Courtesy of FNLondon