Speaking at the Messari Mainnet conference on Thursday, S&P Global chief DeFi officer Chuck Mounts said institutional capital will flood into cryptocurrencies once regulation is clearer.
According to Mount, cryptocurrencies need to have some policy clarity that will give large institutional players and asset allocators more confidence and comfort to step in and start allocating money into the space.
Mount said an important sign would be legislative action on stablecoins, which he described as a way for institutional money to enter the digital asset and cryptocurrency space.
Beyond that, Mount believes a risk assessment would also be helpful. “Once there’s some policy clarity, I think there’s a need to look for some risk assessment frameworks that they’re used to, that both tie into their internal risk assessment capabilities and facilitate their communication with regulators,” he said.