• Chamath Palihapitiya, an early crypto investor and venture capitalist, believes that the U.S.’s regulatory agencies have shut down the crypto sector in America.
• He cites the recent bankruptcy of leading digital currency exchange FTX as a sign of this crackdown.
• He also mentions Coinbase’s struggles with getting regulatory approval despite playing by the rules as proof of this trend.
Chamath Palihapitiya on Crypto in America
Chamath Palihapitiya, an early crypto investor and venture capitalist, recently discussed his thoughts on the state of cryptocurrency in America during a podcast interview. According to Palihapitiya, he believes that U.S. financial agencies like the Securities and Exchange Commission (SEC) are shutting down the entire crypto arena in America by going after companies like Coinbase. He took issue with men like Gary Gensler – the current head of SEC – who are blaming crypto for the current banking crisis we’re seeing in America, which is likely to get in the way of further innovation within this space.
FTX Bankruptcy
Palihapitiya points to FTX’s bankruptcy last November as an example of how hard it is for these companies to escape scrutiny from regulatory agencies such as the SEC. Sam Bankman-Fried – leader of FTX – was accused of taking user funds and paying off loans or investing in Bahamian luxury real estate with them; he is now awaiting trial at his parents‘ California home due to these allegations against him.
Coinbase’s Struggle
Palihapitiya also mentions Coinbase’s struggle with getting regulatory approval despite trying to play by all rules set out for them as evidence that these authorities are determined to shut down any form of crypto innovation within America’s borders: „Coinbase played by the rules, stood in line,[and] tried to do the right things… [Crypto companies are] probably those that were most threatening to establishment, and they were those that did push boundaries more than any other sector… Now they’re paying price for it.“ This prompted Brian Armstrong – Coinbase’s CEO – to explore taking his firm outside American jurisdiction into Bermuda instead where regulations may be more lenient towards their operations.
What Does This Mean?
This crackdown on crypto firms could mean serious trouble for those looking at doing business involving cryptocurrencies within American borders; if they cannot get past regulators such as SEC then their operations may be doomed from start until finish even if they do try everything possible according regulations set out for them by authorities such as SEC or any other law enforcement agency that has taken interest into this matter .
Conclusion
It appears those involved with cryptocurrency will have a tough time operating within American borders due to heavy scrutiny from government agencies such as SEC or any other law enforcement agency interested into matters concerning cryptocurrencies unless something changes soon regarding regulation around this field ;with some top executives even considering moving their operations abroad so they can operate freely without too much interference from authorities .