• Regulatory clarity and institutional adoption are areas of note for the crypto space in 2022, says the FTX chief executive Sam Bnakman-Fried.

• FTX CEO says the industry should expect the first batch of crypto regulation this year.

Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX, has said that the crypto space could see an explosion in institutional investments in 2022, citing the potential for more clarity in the regulatory climate in the US and across the globe.

Bankman-Fried believes that the industry shouldn’t expect much movement on the topic, even though he sees the “first” batch of crypto regulations being published this year.

The FTX boss says that a lot of what happened in 2021 was just “preparatory” work, adding that he doesn’t think there will be loads of activity. He is optimistic that institutional investors will be available if the regulatory environment is favorable for them to make an impact.

“ I believe there will be lots of activity this year. We’ve already seen what happened last year,” he said, adding that “a lot of that has been preparatory. “

A long march to institutional crypto adoption

Bankman-Fried told Bloomberg in an interview that should major institutional players see a move towards clear oversight and regulation, the amount of investment that could come into crypto would be in a “tidal wave.”

He is concerned that global institutional adoption of cryptocurrency might not be possible in one year. He believes that it will take time to mainstream cryptocurrency adoption on Wall Street, just like the global regulatory shift.

According to him, the whole process could take a few years longer even though the market is growing.

“It will be a long process that could take a few years ,”, the FTX chief stated.

On the question of who it is in the investment world, he sees getting onto the crypto bandwagon in 2022 and beyond, Bankman-Fried pointed to “every large bank, every large investment bank, [and] pension funds,” He noted all these players have explored the crypto sector.

The CEO of FTX also spoke about metaverse tokens (NFTs) and other non-fungible tokens, sectors that are generating buzz in Big Tech and Wall Street. These were breakout technologies in 2021 and Bankman-Fried believes they could be key components of the Web 3.0 space.

Sam Bankman Fried also spoke out about crypto regulation in December. He stressed the importance of proper oversight to promote the industry. He told CNBC’s “Mad Money” show :

“Let’s make sure that the regulatory oversight that needs to be there is there and oversight that doesn’t make sense isn’t gumming the industry,”

It’s a call many within the crypto space have made, with countries such as the US, UK, and India showing signs and intent in 2021.