The approval of the first Bitcoin futures ETF has helped the SEC get comfortable with financial products incorporating digital assets. Market manipulation and arbitrage are other factors that the SEC will naturally address in order to authorize the first spot Bitcoin ETF.

 

Stablecoins are needed for institutional adoption. They are the bridge between the traditional finance world and the digital asset ecosystem. Congress will provide stablecoin issuer regulation to coordinate rules across different federal agencies that ensure that issuers are bankruptcy-remote, the underlying tokens are fully backed, and that coordinated transaction reporting is in place.

 

As the digital asset ecosystem continues to grow with active influence over institutions and retail investors, asset managers will be held responsible for clearly and accurately articulating the benefits and risks of investments. As a result, there will be greater scrutiny on digital asset managers that do not act in the best interest of their clients.

 

To date, regulators' guidance on tokens that qualify as securities has been murky. The SEC will identify unregistered securities and hold stakeholders accountable, leading to voluntary SEC registration of borderline tokens, in order to avoid disciplinary action.