The CEO of BitGo, Mike Belshe, recently spoke about the state of cryptocurrency regulations in the United States, expressing his views on the matter. Belshe believes that regulators in the U.S. have adopted a strict approach towards the crypto industry. This approach has led institutions and institutional investors to prioritize compliance with regulations. Belshe acknowledges that there have been some exceptions, such as Blackrock’s entry into the industry with an ETF. However, he believes that, in general, traditional financial firms will remain cautious.
Challenges Faced by U.S. Regulators
Belshe also highlighted the opposition that U.S. regulators have faced from key industry players. It is likely that he was referring to the ongoing cases involving Binance and Coinbase. In comparison, regulators outside the U.S. offer clearer pathways and guidelines for the crypto industry. Belshe suggests that these regulatory challenges could stimulate demand for market platforms that prioritize risk reduction. This, in turn, could create opportunities for crypto firms to develop the necessary technology and for traditional firms to collaborate effectively with regulators.
The Potential for a Strong U.S. Bitcoin Market
Despite the regulatory challenges, Belshe is optimistic about the future of the U.S. Bitcoin market. He believes that a strong market could emerge once these regulatory hurdles are overcome. Belshe emphasizes that this outcome is not far away. In order to address the issues that have led to failures in the past, such as those at Silvergate Bank and FTX, BitGo has developed the Go Network. This network allows institutional investors to store their crypto assets with a qualified custodian while still maintaining liquidity and accessibility.
Growing Partnerships and Collaborations
BitGo’s Go Network has attracted significant players in the crypto industry to join as exchange partners. Companies like Bitstamp, INX, and Gate.io have recognized the value of the network and have decided to collaborate. When asked about the potential partnership with EDX Markets, which is backed by Wall Street, Belshe confirmed the possibility. Interestingly, EDX recently switched its custodial partner from Paxos to Anchorage.
BitGo, as one of the largest crypto custodians, holds over $64 billion in digital assets under custody as of November 2021. This demonstrates the company’s position as a trusted custodian in the industry. With the development of the Go Network and the potential for strong partnerships, BitGo is poised to play a significant role in shaping the future of the U.S. cryptocurrency market.