The CEO of the U.S. arm of crypto exchange FTX, Brett Harrison, says there are two possible factors that could signal a bullish rally for cryptocurrencies – regulatory clarity from authorities and a jump in prices of various crypto coins.

"There are two events that would probably bring significantly more volume. One is crypto prices going up again, sure...that's also true for stocks. Number two, I think, is when there's actually regulatory clarity over crypto exchanges," Harrison said in an interview with Fortune.

The trading volume has plummeted following a sharp decline in the prices of cryptocurrencies since the beginning of the year. According to CoinMarketCap, the market capitalization of the crypto space has dropped below $1 trillion value, while the market was above $3 trillion at its peak.

Harrison believes if somehow the leading cryptocurrencies would turn bullish and other coins follow suit, the volume could increase just like the stock market.

He also commented on a new bill presented by U.S. officials to enable the Commodities Futures Trading Commission (CFTC) regulate the crypto market and provide the clarity that many institutions and retail investors are looking for.

"But let's say that [the bill] passes, and now the CFTC has oversight over, you know, Bitcoin and Ether, and FTX.US is able to register as a digital asset exchange. Every institution, every hedge fund, every family office mutual fund who wants to get exposure directly to crypto can do so on an exchange that's explicitly federally licensed. I think that will make a huge difference," the head of FTX US said.

Harrison argued that since the CFTC already regulates the crypto derivatives market, it will be feasible for the agency to regulate the broader market as well.

"What I would do is, I would give market oversight to the CFTC for probably all crypto, and the reason I would do that is because they already regulate crypto custody for derivatives — they already have that team, they have that expertise," he explained.

Sam Bankman-Fried, founder and CEO of crytocurrency exchange FTX, testifies before US Senators
Sam Bankman-Fried, founder and CEO of crytocurrency exchange FTX, testifies before US Senators AFP / SAUL LOEB