WisdomTree CEO: Trump Regulation Will Bring Bitcoin Mainstream
Date: 2024-07-31 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
WisdomTree CEO Jonathan Steinberg believes Bitcoin and cryptocurrencies are on the cusp of mainstream adoption. He believes regulatory clarity, the emergence of publicly traded cryptocurrency funds, and the tokenization of real-world assets (RWAs) will be key factors driving this trend. In an interview with CNBC on July 29, Steinberg emphasized that these changes will help cryptocurrencies go mainstream in the coming years.
Steinberg highlighted the significance of former President Donald Trump’s speech at the Bitcoin 2024 conference on July 27. Trump has expressed his willingness to bring clarity to the regulation of cryptocurrencies and digital assets, which Steinberg believes is a turning point for the entire industry.
“Trump couldn’t have been more ambitious about what he’s going to do with cryptocurrency and bitcoin as an asset class,” Steinberg said.
The Impact of Regulation on Crypto Adoption
Steinberg believes that a clear regulatory framework will have a profound positive impact on cryptocurrencies and blockchain technology in general. Bitcoin, he said, is already the best-performing asset class of the last 15 years and will continue to outperform the market as it gains regulatory acceptance.
“Bitcoin is the natural evolution of money, similar to how smartphones replaced landlines,” he added.
Steinberg predicts that digital assets will eventually become the dominant form of transactions, transforming financial services.
“In terms of money, you had gold, and then paper money — we’re moving toward programmable money, which will really transform financial services in general,” Steinberg said.
Steinberg emphasized that the topic of cryptocurrencies extends beyond core assets like Bitcoin and Ethereum to include a broader range of tokenized real-world assets.
“Crypto is an asset class, and then there’s the broader tokenization of all real-world assets. We’re seeing all of that converge,” he explained.
Examples of Tokenization in Traditional Finance
Steinberg noted that traditional financial institutions are already entering the RWA market. For example, BlackRock has introduced its BUIDL product, while Franklin Templeton has introduced FOBXX. Goldman Sachs also plans to launch three new tokenization products for institutional clients this year.
McKinsey & Company predicts that the RWA market will reach $2 trillion by 2030. However, the company also pointed to the problem of a “cold start” caused by limited liquidity and transaction volume.
Jonathan Steinberg believes that regulatory clarity, the emergence of cryptocurrency funds, and the tokenization of real assets will be the main drivers of mass adoption of Bitcoin and cryptocurrencies. He sees these changes as an opportunity for cryptocurrencies to go mainstream and transform the financial industry in the coming years.
