Conspiracy Theories and Regulatory Crackdowns
Conspiracy theorists have long believed that central banks and governments would never tolerate the existence of cryptocurrencies as competitors to fiat money. This sentiment has been echoed by some regulators, such as former OCC head Brian Brooks.
Regulatory Actions against US Crypto Entities
The US-based crypto industry has faced significant regulatory pressure. The SEC has taken action against regulated entities like Kraken and Coinbase, while the CFTC has sued Binance.
Tweets Exposing Regulatory Implications
Jesse Powell, the founder of Kraken, expressed his concerns about the implications of regulatory actions in a tweet. He stated that the SEC’s actions were essentially extorting crypto companies and driving them out of the US.
Regulatory Pressure on Stablecoin Minting
Paxos received a Wells Notice demanding it to stop minting Binance USD (BUSD) stablecoin, adding to the regulatory pressure faced by crypto companies.
Biden Administration’s Criticism of Cryptocurrency
In the “Economic Report of the President,” the Biden Administration criticized cryptocurrency as an ineffective technology and highlighted industry fraud.
Bank Closures and Calls for Crypto Crackdown
The closures of crypto-friendly banks like Silvergate, Silicon Valley Bank, and Signature Bank have raised concerns within the crypto industry. Senator Elizabeth Warren has called for a crackdown on crypto, even introducing legislation to outlaw self-custody.
Conspiracy Allegations and Denials
Some within the crypto industry believe that federal agencies are conspiring to destroy crypto. Former Congressman Barney Frank suggested that Signature Bank’s closure was part of an anti-crypto crusade. However, the NYDFS denies these allegations.
Surprise Bank Closure and Alleged Anti-Crypto Message
Signature Bank’s managers were surprised by the decision to place the bank into receivership. Barney Frank believes it was a way to discourage involvement with crypto, despite there being no insolvency based on fundamentals.
Judicial Pushback against Regulatory Agencies
The US judicial branch has pushed back against agencies like the SEC, accusing them of deception. However, the damage has already been done to the crypto industry in many ways.
The US Government’s Threat to Crypto
The actions and rhetoric of the US government pose an existential threat to the country’s cryptocurrency industry. Founders and established companies are considering moving to jurisdictions that respect their right to innovation.
Hot Take: The Crypto Industry’s Struggle in the “Land of the Free”
The regulatory crackdown and government hostility towards crypto in the US have created challenges for the industry. It is unfortunate that a country known as the “land of the free” is stifling innovation in this sector. The future of the US crypto industry remains uncertain as founders and companies explore more welcoming jurisdictions.
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