Bank of America: Uncertainty in Cryptocurrency Market Regulation Shadows Blockchain Development

ChainCatcher news, Bank of America (BAC) stated in a research report on Friday that the rally in risk assets continues, but since early May, the performance of digital assets has lagged behind the Nasdaq stock index by 24%, despite a 52% increase since the beginning of the year.

Analysts Alkesh Shah and Andrew Moss believe, "Due to regulatory uncertainty caused by the SEC's enforcement actions, which have put pressure on token prices, sentiment around digital assets remains poor," and added, "Digital asset trading platforms are just a part of a broader ecosystem."

Bank of America noted that excessive focus on regulatory hurdles, the approval of Bitcoin spot ETFs in the U.S., and illegal activities "cast a shadow over the rapid development and integration of distributed ledger and blockchain technology infrastructure." The bank also stated that it expects blockchain infrastructure and tokenization to transform financial and non-financial infrastructure and markets in the next five to ten years. (Source link)