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Two-thirds of global institutional investors and wealth managers anticipate more flexible regulation in the coming year.
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90% of global institutional investors and wealth managers believe the US regulator has effectively overseen the digital asset sector.
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However, a Nickel study reveals that only 35% consider SEC regulations to have a significant impact on their investment choices in the digital asset sector.
Institutional investors and wealth managers are anticipating more lenient regulation from the US Securities and Exchange Commission (SEC) in the coming year, along with greater clarity on digital assets, according to new research from London-based Nickel Digital Asset Management (Nickel), a leading regulated digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs, and JPMorgan.
The study, which surveyed organizations already invested in the sector, found that 68% expect the SEC to adopt a more lenient approach, compared to 35% who anticipate stricter regulation. Over half (53%) expect increased clarity and guidance, while 44% believe the regulator will take a more constructive stance, reflecting political shifts.
Nickel’s research, which includes institutional investors and wealth managers from the US, UK, Germany, Switzerland, Singapore, Brazil, and the UAE—managing around $1.7 trillion in assets—shows strong support for the SEC and acknowledges its role in the sector. About 90% of respondents view the SEC as an effective regulator of digital assets, and 85% feel it is currently supportive of the sector. Only 5% believe it is unconstructive or overly restrictive, while 80% think the SEC has clearly differentiated between securities and non-securities in the digital asset space.
Nearly 73% of respondents indicate that the SEC’s recent clarifications on Security Token Offerings (STOs) have had the most significant impact on the sector, ahead of 42% who point to guidelines for Initial Coin Offerings (ICOs). Furthermore, 80% agree that regulatory clarity from the SEC is crucial for the sector, and 83% believe SEC actions will positively impact innovation in digital assets.
Despite this, only 35% of respondents feel SEC regulations have a significant effect on their investment decisions in the digital asset sector, with 55% noting a moderate impact and 10% a slight impact.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, remarked: “Recent regulatory actions against FTX and Binance have bolstered confidence in the digital asset sector. The survey indicates that institutional investors and wealth managers are now expecting more lenient SEC regulation following a period of intense scrutiny. A more accommodating regulatory environment is likely to drive growth in this asset class in the US.