The crypto and capital markets will see a new moment with the approval of the first exchange-traded funds for the cryptocurrency Ether (ETH)! Consequently, this measure will be of unique importance for the advancement of digital currencies in the market and may encourage the Brazilian scenario to review its regulations. As stated by SEC chairman Garry Gensler himself: improving the strength of cryptocurrencies through better regulation has a tendency to increase in value in the short term. In this way, impacts in the current era of digital assets, such as the development of more options and investor protection, can emerge more intensely and frequently.
US Regulatory Advances in Crypto and Capital Markets with SEC Decision
The approval of ETFs at the SEC is responsible for recognizing the legitimacy of Ethereum as an asset and the better recognition of cryptocurrencies in traditional financial structures. Considering that the US has a very relevant market, this decision is a decisive milestone for the crypto and capital markets to move forward with greater security and efficiency.
What motivated this decision?
Ensuring that investors have greater security and integrity in the financial market are the SEC’s main motivations in making this decision. Thus, there is a much greater opening for those wishing to explore the world of digital currencies that the American capital market can provide. Even if the decision has increased the price in the short term, its appreciation depends on factors that can only be verified with the course of the financial market’s behavior. In any case, the scenario provided by the decision increasingly requires the creation of a structured tokenization, in order to maintain an adequate performance in the current moment of token growth.
Impacts of the Decision on Brazil and the World
The greater growth of the digital economy is certainly the most notable impact on the crypto and capital markets caused by the SEC’s decision, both in Brazil and worldwide. With the acceptance of tradable ETHs on the stock exchange, there are both new opportunities for investors and a greater challenge for regulators in other countries. In addition, Brazil can take advantage of the integration of cryptocurrencies into the financial system and have a regulatory model adapted to the Brazilian context. Therefore, these impacts are extremely important for those who want to know the best way to act as an investment advisor.
Greater growth in the digital economy
Growing with great intensity in the digital economy is a very relevant impact of the SEC’s decision, since the measure has brought an increase in the number of people interested in applications. In this way, it can be seen that the regulation provides greater accessibility and status for the rise of the crypto and capital markets. The development of the DREX, for example, is intensifying at the same time as the crypto and capital markets are feeling the impacts of the US rule. Consequently, the development of the digital version will make it more common to trade the token and therefore needs to be followed closely for those who wish to take advantage of the current momentum that the digital asset provides. Understanding VASPs is also extremely important, as these creations are largely responsible for the current era of tokenization. All the growth and connection between the parties that trade applications is the result of the development of VASPs, making an understanding of them indispensable in order to further understand the weight of the impact that the decision has had on the crypto and capital markets.
New investment proposals for the Brazilian market
One of the relevant points of the decision in Brazil was that, following the announcement, Anbima – the Brazilian Association of Financial and Capital Markets Entities – brought new investment proposals for the Brazilian market in crypto-assets. The opening of a consultation to verify the proposed rules for guiding investments in crypto-assets by Brazilian funds and in managed portfolios was also another important event following the SEC’s decision. In this way, definitions are being sought as to what the minimum governance requirements would be for providers of essential services in this context, as stated by Anbima itself. The new rules are expected to come into force on October 1st. This initiative, in turn, if done without creating obstacles to the growth of the market, could lead to the creation of safer and more reliable environments. As a result, both investors and the crypto and capital markets themselves will be able to grow.
Accelerating the development of cryptoassets
The development of crypto-assets is a very relevant impact, since with legitimization, there will be greater demand from investors for this type of investment. No wonder there was a time when Ethereum’s native cryptocurrency peaked and obtained the best price. This impact, therefore, is one of the reasons why phenomena such as tokenization for small and medium-sized businesses happen with constancy and intensity. In this way, companies can remain relevant in the current reality that asset tokenization provides. Knowing how to manage digital assets is also another very relevant and frequent concern in the crypto and capital markets. As this is a decisive factor in the quality with which digital assets are handled, it is necessary to have a suitable environment, such as the Whitelabel platform, which offers the autonomy and quality necessary for the tokenization of assets to take place in the best possible way!
Better investor protection
The fact that the SEC’s measure further legitimizes crypto-assets provides greater protection for investors who wish to explore the breadth of this market. As regulations ensure that operations take place on important grounds, such as transparency, this characteristic is very relevant when choosing investments. For those who want to know how to become an independent investment advisor, understanding the basics of investor protection is a very important requirement. With the growing demand for investments, not a few investors will want guidance on making the right choices for their digital assets.
The Importance of a Strategic Vision for Crypto Market Regulation
A strategic vision for the regulation of the crypto and capital markets is indispensable to ensure that operations take place with transparency and quality. To take advantage of this scenario, you can create an account with BLOCKBR and enjoy the advantages that the Whitelabel platform, for example, can offer. The blockchain-based, highly regulated system certainly makes for an excellent migration to tokenization!
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The unlocking of the capital market, giving access to new types and structures of investments through tokens, is bringing a universe of opportunities every day. Blockchain technology is an environment of high security and transparency, as well as being a backdrop for the creation of new operating models. To understand which tokenization model and infrastructure you can use in your operations, you just need to understand the opportunities you can take on, whether as a structurer, originator or distributor/investor. Become an investment advisor for digital assets (structured tokens) through BLOCKBR. You can also be an asset structurer and use our entire risk analysis, legal, technological and commercial infrastructure for distribution with Station or, if you prefer, just raise tokens by investing in your operations or RWA assets. Count on us.
