With a crypto regulation tussle in the United States, the Bank of America has extended its trust to blockchain and tokenization.
A global bank has recently stated in favor of blockchain and tokenization, as it claimed the technology could transform infrastructure and markets in the financial and non-financial domain in the next ten years. But, it has raised concern about the present circumstances in the United States, which has seen ongoing issues between regulators and crypto firms on the regulatory front.
The Bank of America said last week, “Digital asset sentiment remains poor as the U.S. Securities and Exchange Commission’s (SEC) enforcement actions create regulatory uncertainty, pressuring token prices,” adding how digital asset prices had underperformed in the last few weeks compared to equity markets.
The actions by the U.S. Securities and Exchange Commission have invited mixed views, but many were of the opinion that fair regulatory practices for crypto firms were the need of the hour. Analysts from the Bank of America have renewed their trust in blockchain and tokenization, saying how such strict actions on crypto firms could have an effect on the larger ecosystem.
On the other hand, the global bank believes the events concerning the regulatory authorities have overshadowed the rapid development of blockchain and tokenization infrastructure. A lot of media attention has also been diverted to the Bitcoin spot ETF fund in the last week, while approval has been granted yet.
The Bank of America’s positive push for the future of blockchain and tokenization could be instrumental in attracting support for crypto firms in the near future.