Tim Rice, Coin Metrics CEO, believes more risk-averse firms in traditional finance are coming into the cryptocurrency space. He said they care more about understanding how to mitigate their risks.
Rice highlighted that while firms that are already involved with cryptocurrency get a pass when it comes to risk management, people in new firms that are just entering the space do not have the same luxury. He said there are enough people in these firms who want crypto to fail. As such, these people are very buttoned up around examining the risks. Rice gave the example of large banks in New York that want regulatory clarity first.
The executive said they are playing with regulatory clarity for safety reasons. Rice believes it’s just a matter of getting the right regulations in place that get them comfortable. Coin Metrics wants to empower people to make informed crypto financial decisions, and that only comes through the blockchain’s transparency. Rice said the super positive thing about crypto, with Celsius and Voyager and other exposures is that blockchain is a beautiful and elegant solution to see what’s going on. He noted that it took over five years to unpack why Lehman Brothers failed in 2008.
Rice shared that Coin Metrics does not get involved directly with Washington D.C and regulators. But the firm’s data and content have been used by others to justify proposed regulatory frameworks. Rice said the companies like Coin Metric’s tooling. But he outlined that they have a kind of a core crypto-native quasi-anarchist view and Coin Metric does not de-anonymize any of the actors within the crypto space. Rice also said that irrespective of regulatory clarity, some banks are making their own way to jump into the space.
He likened it to being a sailboat race which is ready to go when the wind comes in. The banks are still trying to figure out how to paddle the skiff out to get to the boat.