The bankruptcy of FTX and its affiliated trading firm, Alameda Research, is a major blow to the cryptocurrency industry’s credibility, but there are silver linings, according to a research report released Friday by Bank of America (BAC). “A greater urgency for regulation may enable greater institutional engagement,” analysts Alkesh Shah and Andrew Moss wrote. “A shift in focus (and capital) from speculative trading to projects with real-world functionality and companies with roadmaps to profitability may accelerate industry maturity.” According to the report, regulatory frameworks for the crypto industry are critical for mainstream adoption, and a coordinated global effort is required to discourage regulatory arbitrage and protect consumers and investors.
