In a recent episode of the All-In podcast, billionaire tech investor Chamath Palihapitiya declared “Crypto is dead in America” due to regulatory pressures. Palihapitiya cited recent actions of regulators as a cause for the decline of the crypto industry in the US.
He pointed out that the industry was pushing the boundaries more than any other sector of the startup economy and that authorities were going after crypto because it poses a threat to the establishment. The US Securities and Exchange Commission (SEC) has been taking steps to regulate the crypto sector via enforcement.
Good actors like Coinbase are “paying the price” for what fraudulent firms did to damage the reputation of the cryptocurrency industry, according to Palihapitiya. He also criticised regulators for their anti-crypto stance and their lack of clarity on rules.
What is the solution?
The European Union recently passed major crypto legislation called the Markets in Cryptocurrency Act (MiCA) to regulate the sector as a unique new asset class, and Asian financial centers like Hong Kong and Singapore are also making strides in regulating crypto.
The US must follow suit if it wants to maintain its grip on one of this century’s most promising technological innovations.