Institutions like SEC’s ‘regulation by enforcement,’ survey finds

Most surveyed respondents believe the SEC’s legal cases against Coinbase and Binance will benefit the digital asset industry


13_Phunkod/Shutterstock modified by Blockworks


The SEC’s regulatory actions might be on the right track, according to certain investors.

Nickel Digital Asset Management published results of a survey on Tuesday showing that 92% of institutional investors and wealth managers agree that the agency’s “regulation by enforcement” approach is the most optimal route for the industry’s progression.

Moreover, about 90% of respondents believe that the SEC’s recent actions against Coinbase and Binance will eventually contribute positively to the growth of the digital assets industry.

“Improved regulatory oversight is vital if the digital assets sector is to continue its recent strong performance and become the investment mainstream,” Anatoly Crachilov, CEO of Nickel Digital, said in a statement.

The study, commissioned by Nickel Digital and conducted by market research firm Pureprofile in July 2023, is based on opinions from 200 institutional investors and wealth managers across the US, UK, Germany, Singapore, Switzerland, Brazil and the UAE.

In early June, the SEC initiated legal proceedings against both companies, accusing them of functioning as unregistered exchanges that offer securities. The agency alleged that Coinbase and its holding company breached five regulations, while Binance is being charged with 13 alleged violations.

The SEC’s moves have been scrutinized by entities in the crypto space and criticized as anti-innovation

This has spurred some to reconsider maintaining their operations in the area. For instance, Revolut decided to shut down its crypto services in the US starting September, due to the challenging regulatory environment.

Meanwhile, former SEC chair Jay Clayton has expressed strong dissent regarding the method chosen by the US government to implement regulatory changes.

The study further revealed that most respondents expect the US to spearhead the establishment of solid regulations for the industry, with the UK and European Union expected to closely follow in second and third place. 

At the same time, 26% of respondents selected Asia as a region likely to formulate strong regulations, while 21% chose the Middle East.

“Regardless of which country ultimately leads the way, the intensifying competition between various jurisdictions to create a crypto-friendly environment will ultimately boost adoption of this asset class,” Crachilov said.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


BUZZ holds shares of Coinbase, Robinhood and MicroStrategy


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders


Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume


DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit