Foley & Lardner LLP Publish Crypto Survey And Shows That Investors Prefer Ethereum

According to a survey conducted by the US law firm Foley & Lardner LLP, individuals and investors prefer Ethereum over Bitcoin and other cryptocurrencies. At the same time, there is a desire for more regulations in the crypto market.

The survey shows that most of the respondents want a more regulated industry in the United States. Currently there is a lack of understanding on how to apply the rules and how regulations on financial markets or services might apply.

The market is searching for regulations, yes. But it does not mean that individuals and investors do not want to place their money in the ecosystem. Indeed, most respondents are still willing to invest in crypto-related businesses.

To put it in numbers 84% of those surveyed by Foley & Lardner believe that Initial Coin Offerings should be regulated. At the same time, 86% said that the crypto industry needs to develop a common voluntary standard.

Patrick Daugherty, partner and member of Foley’s Blockchain Task Force, commented on the matter:

“Uncertainty about regulatory standards and duties is an obstacle to salutary product development in this field. But a recent speech by SEC division of Corporation Finance Director William Hinman enlightened the issues and paved the way toward wholesome engagement by the SEC with lawyers for the cryptocurrency industry.”

But the industry is facing other risks. For example, hacks and security breaches are the most pressing threats to the viability and growth of the crypto industry. 71% indicates that theft of cryptos is a strong or very strong risk.

According to 41% of the respondents, the market would crash in the next 12 months, and another 29% believes that this will happen in the next two or five years. But as the market is volatile, almost 60% of the individuals surveyed would take risks in order to obtain important gains.

72% of individuals would invest in exchange-traded funds (ETFs) that hold virtual currencies. At the moment, the SEC did not allow any ETF to start operating. But in the future, there may be a chance for some companies to offer Bitcoin-related ETFs once the SEC approves that.

57% of the responders said that they would support the creation of a commission or task force to better understand the technology and the market before imposing regulations. Regulations seem to be effective against hackers and scammers in the environment, this is the main reason why investors believe that regulations are needed.

Indeed, it is important to mention that in Japan, the regulatory agencies in the country have been taking new measures in order to protect investors’ funds. During this year, the cryptocurrency exchange Coincheck has been hacked and lost an important amount of money.

Allison Charney, partner and member of Foley & Lardner LLP’s Blockchain Task Force, commented:

“The U.S. has long-standing anti-fraud laws that apply to cryptocurrencies, but there are potential gaps and shortcomings in this developing area. While worries about fraud aren’t necessarily surprising, they do provide another sign that industry insiders view regulation on the whole as a good thing.”

Another point to mark is that Bitcoin’s market capitalization is going to be surpassed by another currency. 35% said that it is possible but it is still to early to sell. 5% believes that it will be in one year. 14% thinks that this will happen in 1 to 2 years, 18% said that it will happen between 2 to 5 years, 5% that it will happen in over 5 years, 11% said that never and 12% explained that it will happen but they do not know when.

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