The cryptocurrency landscape is entering a new phase of development, but this evolution is not fueled by excitement or soaring retail activity, according to Ayesha Kiani, Chief Operating Officer at MNNC Group.
During a recent Bloomberg TV interview, Kiani expressed that although institutional enthusiasm is on the rise, their engagement remains deliberate and measured.
As a quantitative digital asset investment firm, MNNC Group notes a surge in demand for stablecoin acquisitions, alongside a trend of Fortune 500 companies incorporating Bitcoin (BTC) or stablecoins into their financial holdings. Additionally, many businesses are investigating blockchain solutions to decentralize internal operations, indicating a shift from speculative trading to more widespread adoption by major corporations.
Kiani highlighted BlackRock and Fidelity as significant institutional entities involved in tokenization and asset digitization, with BlackRock reportedly leading the charge.
Regulatory changes are favoring the crypto sector.
She commented that the Securities and Exchange Commission’s decision to rescind various legal actions, particularly those aimed at Coinbase and MoonPay, signifies a shift away from the previous administration’s adversarial approach to the sector.
Moreover, the CFTC is establishing collaborative groups focused on digital assets.
While there may not yet be a distinct legal status for cryptocurrencies, Kiani believes this is no longer the primary obstacle for the industry’s advancement.
“Even if crypto or blockchain doesn’t receive a unique classification, it will likely be regarded as another asset under SEC regulations, offering similar protections for investors.”
Many investors feel that the previous administration’s efforts in the crypto sphere have fallen short of expectations. Bitcoin and Ethereum (ETH) are set to finish the first quarter with their weakest returns in seven years. Nevertheless, this isn’t a reason for alarm, as the environment for crypto remains quite favorable.
Kiani pointed to Trump’s comments at a recent cryptocurrency event in New York, and the active participation of World Liberty Financial—a crypto firm associated with the Trump family—indicative of ongoing investments in tokens.
Despite this positive rhetoric, the market hasn’t responded strongly.
“Since the administration changed, we haven’t witnessed new volume influx,” Kiani remarked. “We haven’t observed many more large institutions stepping in and saying, ‘here’s the capital, just trade away.’”