During a recent appearance on CNBC’s Squawk Box, former CEO of Barclays, Bob Diamond, expressed his support for the cryptocurrency industry to embrace necessary regulations instead of avoiding them.

Diamond emphasized the crucial need for regulatory clarity in order to fully unlock the potential benefits of digitalization and cryptocurrencies. Additionally, he praised mainstream financial institutions like BlackRock for their increasing involvement in this field.

The former Barclays executive also emphasized the importance of understanding the term “crypto” within the broader context of digital advancements.

He highlighted the growing adoption of digital assets and blockchain technology by traditional financial institutions while underscoring the persistent regulatory uncertainties faced by the sector. Also, Diamond claims that lack of clarity remains a significant obstacle and a risk factor for industry participants and investors alike.

Related Reading: UK Upper Parliament Approves New Crypto Regulation Bill

The former Barclays executive’s call for increased regulation aligns with the prevailing sentiment within the industry and among regulators.

In terms of the overall financial landscape, the ex-Barclays CEO commended the Federal Reserve’s management of interest rates and inflation.

Despite the ongoing debate regarding the Fed’s responsiveness to recent economic indicators, he asserted that the central bank has made significant progress.

Regarding inflation, he dismissed concerns and expressed confidence in the Fed’s ability to effectively control it. He argued that the current inflationary pressures differ from past periods and applauded the Fed’s successful response strategy.

As for concerns about a recession, Diamond brushed aside the notion of an imminent economic downturn. Instead, he speculated that the economy might experience an extended period of sluggish growth.

He further elaborated that both the business and consumer sectors would need to adjust their expectations to a new normal of higher interest rates, a transition that could impede economic growth.

Global cryptocurrency legislation varies, according to Finance Magnates, with some nations welcoming cryptocurrencies while others exercise caution or outright restriction.

Businesses and investors in the cryptocurrency market face uncertainty due to the lack of uniform international legislation.

According to Adam Reeds, founder and CEO of Ledn, a crypto-backed lending firm, regulations serve as a positive aspect for the industry.

Reeds asserts that many institutions and established groups are keen to invest in cryptocurrencies but are hindered by the lack of a regulatory framework. According to him, implementing regulations would address this issue and open doors for institutional involvement.

Katherine Dowling, general counsel and chief compliance officer for Bitwise Asset Management, also emphasized the importance of regulations in establishing a framework that encourages disclosures. These disclosures, Dowling explains, would create transparency within the investment class as a whole.

Additionally, such transparency is crucial for institutional investors who rely on risk profiles for informed decision-making.

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