Federal efforts with credible market participants portend framework for wealth managers offering digital assets, says Aite-Novarica Group

Regional and global stakeholder interest and curiosity in digital assets is growing in the financial services industry, even in the absence of a comprehensive US federal regulatory framework. In a new impact report, US Regulatory Developments for Digital Assets: Implications for US Wealth ManagersResearch and advisory firm Aite-Novarica Group summarizes recent announcements from the Biden administration associated with impending bipartisan legislation, and assesses its potential impact on the US wealth management industry.

“Credible market players are already building a secure and compliant crypto-ecosystem that is likely to support EO,” said Wally Okby, strategic advisor at Aite-Novarica Group. “Wealth managers should engage with providers to understand the technology, risk and business requirements needed to provide access to digital assets and assess whether to build, buy or lease asset infrastructure digital.”

“Beyond early adopters, most wealth managers are still worried about the use of digital assets,” adds David Himmel, partner at Aite-Novarica Group and co-author of the new report. “A regulatory framework, with clear guidelines for investor protection, is essential to meet investor interest and demand.

Dolores W. Simon