Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, at the Bitcoin 2021 conference in Miami, Florida, on June 5, 2021.
Eva Marie Uzcategui | Bloomberg | Getty Images
Cryptocurrencies have had yet another wild year.
Bitcoin, the world's largest digital asset, has seen a roughly 65% gain since January with some ten to twenty percent swings in between. It brought in a crop of new, individual investors along the way as payment giants like PayPal started letting users trade crypto. More billionaires and institutional investors dove in to help legitimize the asset class.
The industry now sprawls well beyond bitcoin. NFTs, blockchain-based videogames and "Web3" are top of executives' minds heading into next year. Regulation remains as the biggest uncertainty.
Here's a look at what some of the industry's most influential executives had to say.
The 29-year-old founder and CEO told CNBC he doesn't expect legislative action to be the immediate answer for "regulatory clarity." Especially since it's "pretty hard right now to get things through Congress."
It's just as likely to be cobbled together from a series of statements, enforcement actions, and "other indications" to set the guardrails," Bankman-Fried said.
The CEO is still bullish on Solana as an alternative to Ethereum. But it's possible that a new blockchain pops up as the "Holy Grail" that would eventually be able to host a million transactions per second. Right now, he said there are "very few even trying to get that point."
"There will be substantial fleshing out of the crypto regulatory systems over the next few years."
"Most banks have effectively decided internally that they will be entering the crypto ecosystem. But how and when they do it is going to depend a lot on the details of regulatory structure."
"There's enormous worry about stablecoins right now. But it's pretty straightforward to address. You have attestations, or you have an audit from a regulator."
"The thing that people are worried about with stablecoins is are they stable? If you can address that, you've addressed most of the worries about it from a customer protection and a systemic risk perspective. It's not that hard to do. So I'm cautiously optimistic that that's where we're going."
Jeremy Allaire, Co-Founder and CEO, Circle
David A. Grogan | CNBC
The CEO of Circle is calling for more use of dollar-pegged cryptocurrencies, or stablecoins, by e-commerce firms, consumers and financial institutions. Circle, which is set to go public via SPAC, operates its own stablecoin called USDC.
Allaire expects to see more institutional adoption and celebrity trendsetters lending their brands to crypto through NFTs. DAOs, which rely on crowdfunding, may even "challenge venture capital investors on some of the largest and hottest deals in crypto," he said.
The biggest threat? "Incoherent and inconsistent, hastily formed regulations and policy," Allaire said.
"Even in an environment where the Fed raises interest rates, investors and businesses will be hungry for the high-yield opportunities offered through digital assets. So expect to see institutional adoption of digital assets balloon directly, through ETFs, or custom yield-generating products."
"There is bipartisan recognition that blockchain and crypto technologies represent a U.S. competitive advantage, especially if properly regulated, so new legislation and laws will come quicker than many people expect."
"In 2022 stablecoin adoption will continue its upward trajectory. We believe that dollars on the internet will soon be as efficient and widely available as text messages and email."
Brian Brooks, chief executive officer of Bitfury Group Ltd., speaks during a House Financial Services Committee hearing in Washington, D.C., on Wednesday, Dec. 8, 2021.
Stefani Reynolds | Bloomberg | Getty Images
Brian Brooks, the former Acting Comptroller of the Currency, said there's now consensus among lawmakers in Washington that crypto is here to stay. He expects more blockbuster funding rounds after a record 2021, continued mainstream understanding of the crypto space.
For example, not all "crypto" are currencies, or meant to act like currencies, he said.
"Retail adoption is there and will continue to accelerate, but for those established Wall Street firms and other financial services companies that are not already involved in the crypto ecosystem, it is a matter of "when" not "if".
"The need for clear regulatory action that creates a sustainable framework to allow crypto and Web 3 to grow in the United States will reach its tipping point."
"The level of activity and innovation occurring in the space is too great to ignore, as is the risk to American competitiveness in technology and capital markets."
Chad Cascarilla, CEO of Paxos.
Adam Jeffery | CNBC
Paxos is the company powering PayPal's crypto offering behind the scenes. CEO Charles Cascarilla also expects more action in the stablecoin market. His company offers its own dollar-pegged coin, USDP. The CEO is one of many warning that the U.S. has a lot to lose if it gets regulation wrong.
"Big tech and finance players like Venmo, Interactive Brokers and Mercado Libre entered crypto in 2021. There will be even more and bigger players joining the onslaught next year."
"2022 is the year of the stablecoin. Consumer wallets enabled stablecoins for the first time this year. Money is a product and it needs to be updated for how people live today. Regulated stablecoins like USDP are the answer."
"Regulatory clarity, consistency and certainty will foster Safe blockchain innovation in the US. This technology presents many opportunities for American market primacy in the long-term if we get this right, and there are many risks if we get it wrong."
This year marked an industry milestone of the first futures-based bitcoin ETF. But Grayscale and others in the industry are looking to take that a step further.
It's looking to convert the world's largest bitcoin trust, GBTC, into an ETF and CEO Michael Sonnenshein is optimistic for an approval in 2022. He's also seeing investor interest beyond bitcoin, and "tension" between Big Tech and start-ups.
"We're entering into 2022 without a [spot] Bitcoin ETF, but believe that in the coming year the SEC and other regulators will continue to dig in on this issue. We remain optimistic that they will allow for an even playing field -- and give investors the optionality between both spot and futures-based ETF products for getting exposure."
"This was certainly a year when we thought people were diversifying beyond Bitcoin and Ether. We're starting to see that investors are going to specific protocols and projects, and an increasing mindshare among investors that the universe of crypto assets is only broadening."
"There will be an expanded conversation around the tension between some of these centralized platforms that are today managed by social media and e-commerce giants, and established tech companies versus some of these up and coming decentralized platforms."
Robinhood started as a stock-trading start-up. But in its second quarter as a public company, it got more than half of total revenue from crypto trades. Of that, more than 60% came from Dogecoin transactions. As the asset class becomes more important to the company's bottom line, executives have said they're moving slowly on adding new assets to the platform, until there's more regulatory clarity.
"2021 was the year crypto went mainstream."
"Whether through NFTs or their token of choice, more people engaged in crypto in what was a breakout year."
"Crypto has long had a HODL mentality, and that extended to NFTs in 2021 where JPGs replaced photos all across social media. The infrastructure investment from 2017 is ready for primetime, with multiple layer L1s and L2 platforms flourishing in 2021. With more crypto enthusiasts to cater to, 2022 will see companies focus more on design and user experience to ease that transition from web 2 to web 3, and we'll continue to see major brands continuing to get involved."
If you've ever perused crypto Twitter, you probably know "Pomp." With more than 1 million followers, the investor is known for his bullish calls on bitcoin and said the asset has transitioned from a contrarian idea, to a "consensus idea on Wall Street in 2021." He expects more adoption next year from legacy companies buying bitcoin for their balance sheets, and eventually building dedicated business units.
Pompliano also highlighted moves in the bitcoin mining industry after China made the activity illegal, bitcoin's potential for global payments, and a "brain drain" underway from Big Tech and Wall Street.
"Bitcoin mining transitioned from a largely international activity to a US-centric activity in 2021. It would not surprise me to see new all-time highs in the bitcoin hash rate in 2022, along with continued market share growth for the US as a whole, along with Texas as a single state."
"We saw a major social media platform, Twitter, embrace the Lightning Network for payments in 2021 via Strike's API (I'm an investor). We also saw a nation state, El Salvador, embrace the Lightning Network for payments. We should expect multiple large Fortune 500 companies to embrace the Lightning Network in 2022 for payments."
"The brain drain from legacy technology and finance industry will continue. Young people, and increasingly the most skilled people, want to focus their talents on the industry where they can have the greatest impact. Crypto has been growing at an incredible rate, both in terms of new jobs, new companies, funding, economic value created, etc. This transition has only begun and will likely accelerate in 2022."
While this was a busy year for the crypto trade association in DC, "2022 is going to be way busier," Bond said. She also expects the SEC to come out with more enforcement actions.
"The Biden administration has been in office for a year. We're now presented with a window where something can get done on a bipartisan basis. And that will advance the industry and it will provide guardrails for market integrity and consumer protection."
"While final legislation may not actually take place, take effect in 2022. I think the direction of travel is going to be clear, and what we're doing in 2022 is setting the stage for 2023, 2024 and beyond."
"The balance is going to be one finding a policy framework in which the industry can flourish and the U.S. can benefit where consumers can also be protected."
The crypto exchange, founded by Tyler and Cameron Winklevoss, climbed to a $7 billion valuation this year and is among the dozens with a bitcoin ETF application in the works. Its COO, Noah Perlman, sees crypto payments going mainstream, more non-tech companies embracing the Metaverse, and more women jumping into a male-dominated market.
"More retail companies with household names will expand their crypto offerings, further legitimizing digital currencies as a form of payment and as an asset. Credit card companies such as Mastercard and Visa that offer crypto rewards will become more prevalent, which will make investing in digital assets as easy as swiping your card at a store."
"It's no surprise to see tech giants Apple, Meta, Snap, Alphabet, and Microsoft build out their Metatverse ecosystem, but we expect this trend will target other industries as we've seen with Nike's acquisition of RTFKT and Adidas launching an NFT collection called "Into the Metaverse".
"The profile of the typical crypto investor will change significantly in 2022. Previously, the typical crypto investor was a man in his 30s making more than $100,000 per year. We already saw some significant demographic shifts in the past year. According to Gemini's 2021 State of the US Crypto Report, 63 percent of U.S. adults are crypto-curious, meaning they don't yet own crypto but report interest in learning more or holding digital assets soon."
"We'll see an approval for a spot bitcoin ETF most likely in H1."
Ethereum has had a break-out year but new, alternative blockchains are popping up as platforms to build NFTs and other apps. Avalanche is among the new challengers to Ethereum. The president of Ava Labs, a former hedge fund trader, predicts a shake out of "speculative" assets, and a "brain drain" as software developers leave Big Tech in search of next wave of computing. He also expects bitcoin's market dominance to keep declining.
"We will continue to see inflows into smart contract platforms, DeFi, Gaming and metaverse. The winners will be the ones with strong growth of users, use cases and transaction activity. Speculative assets with no network effects will be the losers."
"BTC still has strong interest from both institutional and retail investors. Let's not forget that it has had a 10 year lead time compared to other platforms so it still has the biggest brand name out there. On the other hand, it's dominance over the crypto market is declining and will continue to do so."
"While these smart contracts platforms do compete with each other for developers, the real competition is with traditional web 2.0 companies like Google and Facebook. We are seeing tremendous interest from web 2.0 developers who want to now build on decentralized systems because they find web 3.0 to be a lot more creative and exciting."
View original post here:
- Big tech vs. data privacy: It wasnt meant to be this way - VentureBeat - May 25th, 2022
- How the regulation of big tech can affect your business - Information Age - May 25th, 2022
- The big tech thats shaping tomorrow today - Tech Wire Asia - May 25th, 2022
- Americans are united in wanting Congress to rein in Big Tech's power over news publishing, by Douglas Schoen - Press of Atlantic City - May 25th, 2022
- This era of big tech exceptionalism has got to end: Australian eSafety Commissioner - ZDNet - May 25th, 2022
- California bill would allow parents to sue Big Tech over social media addiction - Washington Examiner - May 25th, 2022
- Big Tech, Merchants, and a Range of Data and Fintech Firms Now Account for 35% of the Value of the Financial Services Industry, According to Oliver... - May 25th, 2022
- No Magic Bullet: The Difficulties of Reforming Big Tech - The National Interest Online - May 25th, 2022
- Events Roundup: Big tech parties and conferences are coming to Pittsburgh this June - Technical.ly - May 25th, 2022
- Big Tech Takes Texas to the Supreme Court - The New York Times - May 25th, 2022
- No housing bubble, Davos is back, and rout of Big Tech shares - The Irish Times - May 25th, 2022
- The Good, the Bad & the Artificial: How Big Data & Tech Are Infiltrating the Alcohol Industry - VinePair - May 25th, 2022
- Europe Is Getting Tough on Big Tech. When Will the US Do the Same? - CEOWORLD magazine - May 25th, 2022
- Douglas Schoen: Americans are united in wanting Congress to rein in Big Tech's power over news publishing - Chicago Tribune - April 25th, 2022
- Communication ETFs fall to 18-month lows ahead of big tech earnings - Seeking Alpha - April 25th, 2022
- Just Another Manic Monday Big Tech Weak? - TheStreet - April 25th, 2022
- Big Tech hiring cements Canada's status as Silicon Valley North but there's a catch - CBC News - April 25th, 2022
- In the Battle Against Illiberalism, Don't Take Big Tech for Granted - The National Interest Online - April 25th, 2022
- Will the internet's third iteration free our virtual selves from Big Tech's control? - The New Statesman - April 25th, 2022
- Global Digital Health Market Outlook 2022 - Big Tech Using On-demand Services in Primary Care to Strengthen its Hold in Healthcare - PR Newswire - April 25th, 2022
- Antitrust Reformers Debate Partnering With Bigots To Take On 'Big Tech' - Techdirt - April 15th, 2022
- Here's the typical pay for a Big Tech worker in Austin - Austonia - April 15th, 2022
- MLB forays into the future with new tech for the old ball game - TechCrunch - April 15th, 2022
- Apple privacy protections expected to cost big tech firms $16 billion in coming year - MarTech - April 15th, 2022
- Common Knowledge: Big tech and the digital commons - Resilience - April 15th, 2022
- DuckDuckGo readying browser to compete with big tech products from Google, Apple - Washington Times - April 15th, 2022
- Big Techs battle for the metaverse will come down to ethics - Quartz - April 15th, 2022
- IonQ: Enormous Valuation And The Competition Is Big-Tech - Seeking Alpha - April 15th, 2022
- Panelists Urge Government Resist Getting Involved in Content Moderation - BroadbandBreakfast.com - April 15th, 2022
- Daily Tearsheet: CarbonPay's sustainability-focused payment card, and tech's newfound interest in carbon capture Tearsheet - Tearsheet - April 15th, 2022
- The Senate bill that has Big Tech scared - Ars Technica - April 11th, 2022
- What the Wiki Big Tech Site Tells Us About Competition - CDOTrends - April 11th, 2022
- Cathy ONeil: Big tech makes use of shame to profit from our interactions - The Guardian - April 11th, 2022
- Dr. Oz Wants To Fight Big Tech In The Senate. He Owns At Least $10 Million In Shares Of Alphabet, Amazon, Apple And Microsoft. - Forbes - April 11th, 2022
- Jaws Actor Richard Dreyfuss Says Big Tech's Censorship Is A "Despicable" Practice That Threatens Free Speech - Bounding Into Comics - April 11th, 2022
- GoTo Shares Jump After Raising $1.1 Billion in One of 2022s Biggest IPOs - Yahoo Finance - April 11th, 2022
- 'Birtherism' to the 'Big Lie': Inside Obama's fight to counter disinformation - WDJT - April 11th, 2022
- Big Abortion's Big Tech Allies Aim to Censor Pro-Lifers. They Won't Win. - Daily Signal - April 9th, 2022
- Despite railing against Big Tech and Big Pharma, records show Dr. Oz has invested millions in both - ABC News - April 9th, 2022
- Elizabeth Warrens plan to break up Big Tech and other mergers - Vox.com - April 9th, 2022
- Canada wants Big Tech to share its riches with news publishers - The Register - April 9th, 2022
- The Metaverse is a Huge Opportunity for Education. Big Tech Must Not Ruin It | Opinion - Newsweek - April 9th, 2022
- Russian Disinformation, Canadian Big Tech, WideOpenWest Sale, Broadband Emerging Leaders - BroadbandBreakfast.com - April 9th, 2022
- 'Don't Break my Prime?' Actually, it's time to move fast and break....Big Tech bobsullivan.net - Bob Sullivan.net - April 9th, 2022
- Downtown Austin is looking like itself again as big tech returns to the office - Austonia - April 9th, 2022
- These people lead sustainability within Big Tech. Here's how much power they actually have. - Protocol - April 9th, 2022
- Why Elon Musk's Twitter move is supercharging the Big Tech debate - Fox News - April 9th, 2022
- Big Tech's fast-and-dirty employment honeymoon is over as Amazon unionises - City A.M. - April 9th, 2022
- Is Big Tech 'Targeting' the Elderly a Point of Concern? - hackernoon.com - April 9th, 2022
- Why Alibaba And Other Big Tech Stocks Are Shooting Up In Hong Kong Today - Benzinga - Benzinga - April 9th, 2022
- Americans Deserve a Fair Fight Against Big Tech InsideSources - InsideSources - April 2nd, 2022
- Government tech shouldnt be the minor leagues - Protocol - April 2nd, 2022
- To Stop Online Hate, Big Tech Must Let Those Being Targeted Lead the Way - Algemeiner - April 2nd, 2022
- Big tech is fixing bugs faster. Will that influence trickle down? - CIO Dive - April 2nd, 2022
- Media and Big Tech censorship is alive and well - Washington Times - April 2nd, 2022
- Power Moves: A new focus for Lynsie Campbell and big tech names on CMU's list of honorary degree recipients - Technical.ly - April 2nd, 2022
- How Google and Amazon bankrolled a 'grassroots' activist group of small business owners to lobby against Big Tech oversight - CNBC - March 31st, 2022
- DOJ backs bills that could kneecap Big Tech - Axios - March 31st, 2022
- Watchdog Group Publishes Encyclopedia of All the Nasty Things Big Tech Has Done - Gizmodo - March 31st, 2022
- Local Tennessee officials need to regulate big tech and protect our small businesses | Opinion - Tennessean - March 31st, 2022
- Freedom to Think by Susie Alegre review the big tech threat to free thought - The Guardian - March 31st, 2022
- In a Climate Crisis, the Future Relies Alarmingly on Big Tech - The New York Times - March 31st, 2022
- S&P 500 ends higher with financials as Treasury yields jump - Reuters - March 31st, 2022
- U.S. Senate votes to move forward with Alvaro Bedoya's nomination to the FTC - Fox Business - March 31st, 2022
- Physics - Seeking Diversity When Faced with Adversity - Physics - March 29th, 2022
- A Big Swing at Big Tech - The New York Times - March 27th, 2022
- Australia to make Big Tech hand over misinformation data - Reuters - March 27th, 2022
- States Could Let Parents Sue Big Tech for Addicting Kids. Here's What That Really Means. - TIME - March 27th, 2022
- If Congress Doesn't Rein In Big Tech, Censors Will Eliminate The Right From Public Discourse - The Federalist - March 27th, 2022
- Michael Hiltzik: That big tech exodus out of California turns out to be a bust - The Denver Gazette - March 27th, 2022
- Stigler Conversation: How the Chinese Government Thinks About Big Tech - ProMarket - March 27th, 2022
- Liberals and conservatives bash Big Techs preparations for midterm elections - Washington Examiner - March 27th, 2022
- ACCC vs Big Tech: Round 10 and counting - University News: The University of Western Australia - March 27th, 2022
- Rajeev Chandrasekhar: Need to relook laws to de-risk Indian internet, make it difficult for Big Tech to be weaponised - The Indian Express - March 27th, 2022
- A Populist Attack on Big Tech - Econlib - March 4th, 2022
- Big Tech companies are harming not helping healthcare - MedCity News - March 4th, 2022
- This Big Tech company 'surprises and delights employees to keep them happy - CNBC - March 4th, 2022
- How are the big tech companies responding to the invasion of Ukraine? - Sky News - March 4th, 2022
- Tech companies like Facebook and Twitter have a Russia problem - Vox.com - March 4th, 2022
- Covid News: U.S. to Offer Covid-Fighting Tech to Other Nations - The New York Times - March 4th, 2022