Key Takeaways
- • A global survey by Nickel Digital Asset Management found 68% of institutional investors and wealth managers expect greater flexibility from the SEC on digital assets in the coming year, versus 35% who anticipate stricter regulation.
- • 53% expect increased clarity and guidance from the SEC, and 44% believe the regulator will be more constructive, reflecting political change.
- • Around 90% of respondents view the SEC as an effective regulator of digital assets, and 80% say it has been clear in distinguishing securities from non-securities.
- • 73% cite the SEC's recent Security Token Offering clarifications as the most significant development for the sector, compared with 42% for ICO guidelines.
- • Only 35% say SEC rules have a significant impact on their digital asset investment decisions, while 55% describe a moderate impact.
Summary
Institutional investors and wealth managers expect more flexible regulation from the U.S. Securities and Exchange Commission on digital assets over the coming year, along with greater clarity, according to a global study conducted by Nickel Digital Asset Management, a London-based digital asset hedge fund manager. The survey covered institutions in the U.S., U.K., Germany, Switzerland, Singapore, Brazil and the United Arab Emirates, which collectively manage around $1.7 trillion in assets.
The study found 68% of respondents expect greater flexibility from the SEC, compared with 35% who anticipate stricter regulation. Some 53% expect increased clarity and guidance, while 44% believe the regulator will become more constructive, a shift the survey links to political change. Sentiment toward the agency is broadly positive: around 90% consider the SEC an effective regulator of the sector, 85% say its stance is very or somewhat favorable, and only 5% describe it as unconstructive or aggressively restrictive. About four in five (80%) say the SEC has been clear in distinguishing securities from non-securities.
Respondents also pointed to specific regulatory developments. According to the survey, 73% say the SEC's recent clarifications on Security Token Offerings have had the most significant impact on the sector, compared with 42% who cited its guidelines for Initial Coin Offerings. Around 83% expect the SEC's regulatory actions to have a positive impact on innovation in digital assets, and 80% agree that regulatory clarity is important for the sector.
Despite this support, the survey indicates regulation plays a moderate role in investment decisions. Only 35% say SEC rules significantly affect their digital asset allocations, while 55% describe a moderate impact and 10% a slight impact.
Anatoly Crachilov, CEO and founding partner of Nickel Digital, attributed rising confidence partly to strict regulatory actions against FTX and Binance. He said a more accommodative U.S. regulatory environment would likely drive growth of the asset class.
The study found 68% of respondents expect greater flexibility from the SEC, compared with 35% who anticipate stricter regulation. Some 53% expect increased clarity and guidance, while 44% believe the regulator will become more constructive, a shift the survey links to political change. Sentiment toward the agency is broadly positive: around 90% consider the SEC an effective regulator of the sector, 85% say its stance is very or somewhat favorable, and only 5% describe it as unconstructive or aggressively restrictive. About four in five (80%) say the SEC has been clear in distinguishing securities from non-securities.
Respondents also pointed to specific regulatory developments. According to the survey, 73% say the SEC's recent clarifications on Security Token Offerings have had the most significant impact on the sector, compared with 42% who cited its guidelines for Initial Coin Offerings. Around 83% expect the SEC's regulatory actions to have a positive impact on innovation in digital assets, and 80% agree that regulatory clarity is important for the sector.
Despite this support, the survey indicates regulation plays a moderate role in investment decisions. Only 35% say SEC rules significantly affect their digital asset allocations, while 55% describe a moderate impact and 10% a slight impact.
Anatoly Crachilov, CEO and founding partner of Nickel Digital, attributed rising confidence partly to strict regulatory actions against FTX and Binance. He said a more accommodative U.S. regulatory environment would likely drive growth of the asset class.
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