Christopher Wood of Jefferies: US crypto regulation will be “easier” than China’s dictatorship

Christopher Wood, director of global equity strategy at Jefferies, says that crypto regulation in the United States will ultimately be “very positive” for bitcoin or other crypto assets. It would also be more tolerable than China’s authoritarian approach.

Jefferies is a diversified financial services company active in investment banking and capital markets, wealth management, and direct investment.

Christopher Wood – Head of Global Equity Strategy at Jefferies

US regulation becomes “very aggressive”

Christopher Wood discussed crypto regulation in his latest weekly research report, Greed & Fear. He reported that the regulatory response to cryptocurrencies in the United States is likely to breathe easier than “China’s authoritarian model” given the rapidly deteriorating state of US-China relations.

Wood expects the US Securities and Exchange Commission (SEC) to come up with a clear regulatory roadmap, citing new chairman Gary Gensler, who is pushing for a regulatory framework for cryptocurrencies. Gensler has repeatedly said that crypto exchanges need more regulation and called on Congress to get involved.

“That will ultimately be very positive, because Bitcoin or other crypto assets can only really develop their network potential – in the sense of mass adoption – if they become part of the system.”

Recently, China started cracking down on Bitcoin mining and the People’s Bank of China (PBOC) has banned the country’s banks from engaging in crypto-related activities. It is estimated that more than 90% of China’s bitcoin mining capacity has been shut down.

The Chief Strategy Officer stated that China doesn’t want its citizens to own cryptocurrencies:

“This is in part because of the obvious possibility of using stablecoins like Tether to rotate accounts that are already closed. More importantly, China doesn’t want competition when it comes to rolling out the digital yuan nationwide, likely in the fourth quarter of this year.

China is actively developing central bank digital currencies (CBDCs) and has tested them in various cities. More than 3,000 ATMs in Beijing now offer withdrawals of digital currencies in yuan. Some analysts believe that China’s absolute control over CBDCs will fuel demand for the cryptocurrency.

Holz explains in detail:

“Sure, the decentralized aspect of blockchain technology that is so appealing to libertarians who oppose state monopoly fiat currencies is the complete opposite of the centralized system in China. The People’s Republic of China understands this well. This is definitely a much more important issue for Beijing than the carbon-generating aspects of Bitcoin mining. “

Jefferies reduced its gold exposure in favor of Bitcoin in its recommended portfolio of US dollar pension funds last December:

“50% of the physical gold weight in the portfolio will be reduced by 5% for the first time in several years and Bitcoin will be allocated. The company held 5% bitcoin in its portfolio. “

The SEC and CFTC recently warned investors about funds investing in bitcoin futures. While Gensler has pushed for crypto regulation to protect investors, the SEC removed bitcoin and cryptocurrencies from its regulatory agenda this year.

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According to News.Bitcoin

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