Ken Griffin, founder and CEO of global market maker Citadel Securities, said that the lack of regulation in the market has prevented him from investing in cryptocurrencies, and that his firm would have participated in the crypto markets if there were no regulatory uncertainty.
In an interview with Bloomberg, Griffin stated that Citadel avoided trading cryptocurrencies because of the risks posed by operating in an unregulated industry:
“We do not trade cryptocurrencies due to regulatory uncertainty.”
According to Griffin, Citadel’s reputation as a traditional market maker could have placed the company in an advantageous position in the crypto market had it not been for the “regulatory vacuum” that exists in the crypto space.
“I would trade because that would meet the needs of our online brokerage partners who want to quote a first-tier firm… We provide excellent service every minute of every day, but they want us to provide pricing in crypto. But I don’t want to take the regulatory risk that some of my contemporaries are willing to take in this regulatory vacuum.”
Citadel Securities CEO added that he supports the efforts of Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), to regulate cryptocurrencies. According to Griffin, the regulations to be made in crypto will transform the cryptocurrency market into a smaller but more competitive space.
“I think President Gensler is quite right on the importance and necessity of cryptocurrency regulation. I think doing this will make it a smaller market, because once there is regulatory clarity it will become a much more competitive market. It will become a small market with fewer people just wanting to make quick money, which is pretty good…”