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The bitcoin price has doubled so far this year, revitalizing the ethereum, XRP
Now, BlackRock’s legendary chief executive Larry Fink, who shocked the world when he announced a surprise crypto flip last week, has said he expects crypto to “transcend” traditional currencies, including the U.S. dollar.
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BlackRock’s Larry Fink has flipped to become a supporter of crypto, helping the price of bitcoin, … [+]
“Importantly, because it’s so international, [crypto is] going to transcend any one currency in currency valuation,” Fink, who last week said bitcoin and crypto could “revolutionize finance” in a dramatic reversal from his previous position of bitcoin being nothing more than an “index of money laundering,” told CNBC.
“More and more of our global investors are asking us about crypto,” Fink said, explaining BlackRock’s move to file an application for a U.S. spot bitcoin exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC) last month.
Fidelity and other Wall Street giants quickly followed in BlackRock’s ETF footsteps, betting the world’s largest asset manager will find a way through the regulatory fog that’s so far impeded a U.S. spot bitcoin ETF.
“We are working with our regulators because, as in any new market, if BlackRock’s name is going to be on it, we’re going to make sure that it’s safe and sound and protected,” Fink said.
This week, the SEC suffered what many interpreted to be a setback in its attempt to rein in the crypto market when a federal judge ruled the sale of Ripple’s XRP on exchanges and through algorithms did not constitute investment contracts. However, the court found Ripple’s institutional XRP sales did violate federal securities laws.
The ruling boosted the combined crypto market, sending the bitcoin price, ethereum and XRP soaring. The XRP price rocketed by around 60% in the 24 hours after the news broke as traders bet the regulatory uncertainty that’s weighed on the crypto market in recent months could be ending.
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The bitcoin price has rocketed over the last few years, rebounding after a price crash last year … [+]
This year has seen pressure on U.S. lawmakers and regulators to come up with a framework for how bitcoin and crypto exchanges and businesses operate increase as Europe and countries across Asia pull ahead.
“The U.S. has an opportunity to be a leader in establishing the frameworks for bitcoin financial products and regulations and a hub for innovation,” Alex Adelman, the chief executive of U.S.-based bitcoin rewards app Lolli, said in emailed comments.
“However, if the U.S. keeps its laggard pace on establishing innovative financial policies and products, we will see the U.S. fall behind other global powers and leading companies in the fast-growing crypto industry migrate away from the U.S. over time.”