• Chamath Palihapitiya recently declared that “Crypto is dead in America”, blaming the recent actions of regulators.
• The US SEC has been amping up its efforts to regulate the crypto sector via enforcement this year, such as issuing a Wells Notice to Coinbase and forcing Kraken to shutter its staking service.
• Good actors like Coinbase are paying the price for what fraudulent firms like FTX did to damage the reputation of the cryptocurrency industry.
Declaration: Crypto is Dead in America
Billionaire tech investor Chamath Palihapitiya recently declared that “Crypto is dead in America” on a recent episode of the All-In podcast. He blamed this sorry state on the recent actions of regulators, who have pointed their guns at crypto due to it posing a threat to the establishment.
Regulatory Pressure Increasing
The US Securities and Exchange Commission (SEC) has been amping up its efforts to regulate the crypto sector via enforcement this year. Last month, they issued a Wells Notice to Coinbase, signaling it will soon pursue legal action against them over unregistered securities offerings (like their staking program and some token listings). They also forced Kraken to shutter its staking service, took out action against BUSD stablecoin issuer Paxos (alleging that BUSD is a security) and are propping a ban on investment advisors from trading in crypto.
Good Actors Paying Price
Chamath was strongly critical of regulators for their snubbing of good players like Coinbase and cozying up to bad actors like FTX, arguing that good actors are being punished for what fraudulent firms did wrong – damaging the reputation of cryptocurrency industry as whole.
Coinbase Suing SEC
Coinbase recently sued SEC asking for it respond to July 2022 petition clearer crypto rules or else face potential exit from US market. They argued that good players should not be paying for bad players’ mistakes and that regulatory clarity is needed for innovation within industry flourish.
Solution? Bitcoin
Despite regulatory pressure continuing mount, there still hope yet – Bitcoin remains popular solution many investors despite all these challenges facing rest cryptocurrency space . It seems likely continue serve important role economy going forward despite current issues faced by other coins across United States .