Fidelity Investments, Square Inc. SQ +1.30% and several other financial firms are forming a new trade group that aims to shape the way bitcoin and other cryptocurrencies are regulated.
The Crypto Council for Innovation will lobby policy makers, take up research projects and serve as the burgeoning industry’s voice in championing the economic benefits of digital currencies and related technologies. Crypto investor Paradigm and Coinbase Global Inc., which operates a cryptocurrency exchange, also signed on as initial members of the group.
These companies are serious financial heavyweights. Fidelity has $10 trillion in assets under management. Square’s market cap is over $100 billion. And Coinbase expects to IPO soon as a valuation of nearly $70 billion.
I suspect these corporate giants are trying avoid the possible banning of bitcoin anonymity that I wrote about here on March 5. A proposed regulation from the last days of the Trump administration could have removed one of bitcoin’s most appealing features, its untraceability.
A major lobbying group, a Fidelity ETF…bitcoin is really becoming institutionalized. Although I don’t trade cryptocurrencies myself, I view this is a significant positive for the technology. Every step towards establishment adoption and away from crippling regulation helps.
For more on bitcoin, check out these posts:
- Bitcoin Anonymity Could Become A Thing of the Past If This Regulation Passes
- This New Indicator May Tell You Where Bitcoin Is Headed
- How Bitcoin Could Reach $400,000
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