Although Ken Griffin, the founder and CEO of Citadel Securities LLC company, is not a fan of cryptocurrencies, that is the reason why the firm does not trade digital assets.
In an interview with the Economic Club of Chicago, Griffin stated that Citadel does not trade in crypto assets because of regulatory uncertainties around them.
The US billionaire hedge manager admitted that he does not like cryptocurrencies but stated that his views have little to do with why Citadel – the leading global market marker – has yet to invest in the digital assets market.
Griffin stated that Citadel would trade crypto assets if there were more regulatory certainty. The renowned investor said that there is demand for cryptocurrencies from the company’s online partners but stated that the regulatory uncertainty is just a major concern.
While some market makers -companies that offer market liquidity by streamlining sell and buy quotes for others to trade against – such as DRW and Jump Trading, have embraced cryptocurrencies, Griffin admitted that Citadel Securities has not.
“I just don’t want to take on the regulatory risk in this regulatory void that some of my contemporaries are willing to take on,” Griffin said.
“Because of a lack of regulatory certainty around cryptocurrency, we just aren’t involved today. I believe [Securities and Exchange Commission] Chairperson Gensler is spot-on on the need to have thoughtful regulation around cryptocurrency,” he said.
Griffin stated that developing regulations will make the cryptocurrency industry a smaller market because it will become a far more competitive market when there is regulatory clarity.
The hedge fund billionaire stated that Citadel would trade cryptocurrencies if regulated, regardless of his thoughts.
Griffin criticized the amount of energy and time spend on cryptocurrencies, stating that it is a jihadist call that some people don’t believe in the US dollar. He said that he wished the frenzy around the developments in cryptocurrencies funnelled towards developing a more robust US economic system.
“It’s a jihadist call that we don’t believe in the dollar. What a crazy concept this is that we as a country embrace so many bright, talented people to come up with a replacement for our reserve currency,” Griffin said.
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