As many are looking at the red flags involved with investing in cryptocurrency, Ethereum Co-founder Charles Hoskinson isn’t worried. In fact, he believes the “future is bright.”
According to Cryptovest, Hoskinson wrote on Twitter on June 21, “What’s often missed by the cryptocurrency is going to die broken record media is that after the next wave of regulation, Wall Street is showing up to the party with all their locked up capital. That’s tens of trillions of dollars entering the space eventually. Future is bright.”
There are some signs that crypto could be on the ride, and that the “tens of trillions of dollars” Hoskinson is referring to may very well exist. Goldman Sachs recently opened up a bitcoin trading desk for its clients, and other companies may soon follow suit as regulation on cryptocurrencies becomes clearer.
Earlier this month, the Securities and Exchange Commission’s (SEC) leading authority on bitcoin, cryptocurrency and initial coin offerings (ICOs) ruled that some well-known cryptocurrencies, like bitcoin and Ethereum, are not securities. However, it’s likely the coins offered during ICOs are entirely — or mostly — securities. As such, they can expect to come under the regulatory control of the SEC and relevant securities laws.
“Central to determining whether a security is being sold is how it is being sold, and the reasonable expectations of purchasers,” said William Hinman, head of the Division of Corporate Finance for the SEC, in a speech at the Yahoo All Markets Summit: Crypto conference in San Francisco.
In April, Coinbase started a new incubator fund called Coinbase Ventures, which is designed to help launch firm and aid founders in the cryptocurrency and blockchain industries.
“We’re going to invest off our balance sheet into crypto companies,” said Coinbase President and Chief Operating Officer Asiff Hirji. “We will invest in companies that are in the space and are aligned with our values.”