Analysts at Cowen have issued a report warning that the current turmoil in the cryptocurrency market will not end anytime soon, and investors should closely monitor developments as the U.S. government may block Binance’s acquisition of FTX.
“We’ve heard concerns in Washington that the Committee on Foreign Investment in the United States (CFIUS) may launch a review on national security grounds,” the report said.
Cowen analysts believe that the ongoing drama is hurting the entire cryptocurrency market from a U.S. regulatory perspective. The U.S. Congress is likely to hold more hearings next year focused on whether global cryptocurrency exchanges threaten U.S. financial stability.
The question is not whether these exchanges are global. But this characteristic has sparked claims that these cryptocurrency companies are taking too much risk without regulation.
Furthermore, Cowen believes that the biggest winner in this turmoil may be the Securities and Exchange Commission (SEC), as SEC Chairman Gary Gensler has been looking to tighten regulations on cryptocurrencies.