Citadel Wants Regulatory Clarity Before Buying Cryptocurrencies: CEO

CEO Kenneth Griffin says the company is not yet ready to take regulatory risks

Citadel Securities, a global hedge fund company based in the United States, has not bought or traded cryptocurrencies because the crypto space is still facing a lot of regulatory uncertainty.

This is the view of Ken Griffin, the company’s founder and chief executive officer.

Griffin said this in one of Reuters quoted interview.

“We are simply not involved today”, he ventured to explain why the multinational company has not followed other hedge funds and added Bitcoin and other crypto assets to their portfolios.

According to the billionaire investor, he does not want to “take the regulatory risk” in the face of uncertainty – even if some of the leading companies in the investment sector already do so.

In a speech to the Economic Club of Chicago, Griffin pointed to the need for proper regulation of cryptocurrencies, citing Gary Gensler’s recent comments on the subject.

Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), recently said that the regulator is interested in regulating cryptocurrencies because so many firms that are on the sidelines are likely to be encouraged to enter cryptocurrencies if there is clarity on the issue.

Griffin isn’t shy when it comes to explaining his position that he largely doesn’t support cryptocurrencies. However, he believes that if regulation brings more competition to the market, it will be easy for Citadel to invest in cryptocurrencies.

In his opinion, clarity in the market will eradicate the aspects that make cryptocurrencies unattractive for some large investors. In his view, this will lead to the market “smaller and smaller” and thus becomes attractive for major players in the mainstream market.

The growth in the digital assets sector has led many crypto enthusiasts to point out the potential of cryptocurrencies to replace the US dollar and national currencies in other countries,

The introduction of Bitcoin as legal tender in El Salvador would be a good example of this possibility. But Griffin is not convinced and continues the concerns about the US dollar with a “jihadist call” and one “crazy concept” same.

Even so, Griffin acknowledges that Citadel will likely enter the crypto market if the area is properly regulated.

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