How Regulations Could Affect Investing in Cryptocurrency

"Regulations are a positive aspect for the industry," says Adam Reeds, founder and CEO of Ledn, a crypto-backed lending firm, because "many institutions and larger established groups are waiting on the sidelines." In fact, he believes many of these institutions would like to invest in crypto, but a lack of regulations simply makes it infeasible for them.

In addition, regulations "should create a framework where there are disclosures," says Katherine Dowling, general counsel and chief compliance officer for Bitwise Asset Management. These disclosures, Dowling goes on to say, will help create transparency for the overall investment class.