Chris Larsen Criticizes President Biden’s Stance on Crypto
Chris Larsen, the co-founder of Ripple, has expressed his disapproval of President Joe Biden’s position on cryptocurrency, arguing that it is impeding innovation in the United States.
Larsen believes that the US is no longer leading the global blockchain industry, citing the impact of Biden’s stringent crypto policies.
Biden’s Stringent Crypto Policies Hold Back the US
In a Bloomberg interview, Larsen pointed out a perceived lag in the technological advancements of the US, attributing it to Biden’s strict regulations on crypto.
Recently, Biden has proposed regulations that closely scrutinize the earnings and production aspects of the crypto industry.
One such proposal is a 30% tax on crypto mining, known as the Digital Asset Mining Energy (DAMA) excise tax, aiming to address the environmental concerns associated with it.
Additionally, stricter regulations on brokers’ reporting of digital asset transactions have been introduced.
Larsen argues that these rules and the attempt to treat crypto as a traditional asset could have a detrimental effect on the industry.
Larsen Highlights the Importance of SEC’s Rulings
Despite the challenges posed by Biden’s policies, Larsen remains optimistic. He emphasizes the significance of the July 13 ruling, which determined that Ripple’s native token, XRP, is not considered a security for retail sales.
Larsen suggests that this ruling poses a challenge for the Securities and Exchange Commission (SEC), as it contradicts their recent actions against crypto companies.
The SEC’s legal battle with Grayscale over its Bitcoin exchange-traded fund (ETF) product is also mentioned. The US Court of Appeals ruled in favor of Grayscale, criticizing the SEC’s rejection of the application.
Larsen views these developments as groundbreaking and positive for the US’s crypto and blockchain policies.
Hot Take: The Impact of Biden’s Policies on the Blockchain Industry
Chris Larsen’s criticism of President Biden’s crypto policies raises important questions about the direction of the blockchain industry in the United States. While Biden’s regulations aim to address concerns and align crypto with existing asset standards, their stringency may hinder innovation and push the industry offshore. The US risks losing its dominant position in the global blockchain landscape, with cities like London, Singapore, and Dubai taking the lead. As the industry evolves, finding a balance between regulation and fostering innovation becomes crucial for the US to maintain its competitiveness and embrace the potential of cryptocurrencies and blockchain technology.
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