Wall Street banking on crypto

CEOs from three of Wall Street’s biggest banks appeared before the US Congress last week to discuss their role in cryptocurrencies. Executives representing CitiGroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley and Bank of America, shared their interest in a future where cryptocurrencies and blockchain technology are inevitable.

CitiGroup CEO Jane Fraser said in a statement, “Citi is focusing resources and efforts to understand changes in the digital asset space and the use of distributed ledger technology, including demand and interest by our clients, regulatory developments and technology advancements.”

The hearing comes a month after the House passed Eliminate Barriers to Innovation Act of 2021, a bill geared towards clarifying digital asset regulation in the US. Should it become law, there would be a sensible balance of power between Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and will further encourage crypto adoption at an institutional level.

Amy Davine Kim, Chief Policy Officer at the Chamber of Digital Commerce, described the innovation act as a landmark event, noting “it’s the first bill to address regulatory clarity for digital assets and digital asset marketplaces to pass the house.

“It brings a number of stakeholders to the table, so it’s not just the SEC, it’s not just the CFTC, it’s also businesses and thought leaders who actually have expertise in the digital asset space.”

Could this be yet another signal for more institutional adoption?