The cryptocurrency industry in the United States is currently suffering from the policy makers of the country. Earlier this month, Binance and Coinbase were both sued for offering crypto as an unregistered security, among other things. But Bank of America is keeping its spirits high.

Bank of America: Crypto Sentiments Still negative

to write CoinDeskWho read a research report from the investment bank of america. In it, he shows that the cryptocurrency industry is underperforming against the Nasdaq, the US stock exchange for technology stocks. According to the bank, this is because regulations in the United States are not favorable to cryptocurrency.

Although the SEC is currently primarily targeting exchanges, it is only a small part of the ecosystem, BoA asserts. Nor was it positive for the cryptocurrency itself. This is what the Securities and Exchange Commission (ADA) called Cardano in its indictment against both Binance and Coinbase. Since the lawsuit was launched on June 5, the coin has already fallen by 30%, and the price of Cardano has yet to recover.

The bank remains positive about cryptocurrency adoption

According to the bank, regulatory ambiguity, disapproval of a Bitcoin spot ETF, and illicit activity in the cryptocurrency industry overshadow the positives. The investment bank remains positive about cryptocurrency. Still, you expect the sector to revolutionize the financial industry over the next five to ten years. Bitcoin could become a good inflation hedge again, which was not the case in 2022.

However, Bank of America is not averse to criticizing the industry. For example, you believe that the Proof of Reserves evidence revealed by many exchanges after the issues with FTX is not enough to inspire confidence. I also believed at the end of last year that regulation would be the next step that would drive the mainstream adoption of cryptocurrencies.