FTX US CEO Explains What Catalysts Could Help Crypto Market Recover More Quickly

Brett Harrison, CEO of U.S. division of crypto exchange FTX, recently explained what we need to see in the crypto space in order to “slow down market contagion and quicken recovery.”

In a Twitter thread posted on June 20, Harrison named these three catalysts: “clarity from US regulators”; “more robust US crypto futures and options markets”; and “US spot crypto ETFs”.

Harrison then went on to say:

  • Regulatory clarity for US crypto exchanges and other digital asset providers would instill confidence for US institutional investors to continue betting on the long term viability of the assets.
  • More robust crypto futures and options markets in the US would also help bring in institutional capital, dampen volatility by giving access to capital efficient hedging, and make it easier for firms to gain exposure to the asset class without needing to handle spot.
  • Spot ETF approval in the US would bring efficient price discovery and cheap means of crypto exposure to one of the most regulated and well-understood asset classes in the world.

On June 24, an article CoinDesk stated that according to a report by The Wall Street Journal (WSJ), “FTX is in talks to acquire a stake in beleaguered crypto lender BlockFi” and that “the potential tie-up would quickly deepen the financial relationship established when crypto exchange FTX extended a $250 million emergency line of credit to BlockFi earlier this week.”

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