Cathie Wood, Managing Director of ARK Invest, believes that recent SEC regulatory actions could have contradictory effects on the cryptocurrency industry. While these measures spur decentralization, they could also hurt US competitiveness in this area.
SEC crackdown threatens US competitiveness
The practice of “staking” allows investors to generate passive income through their cryptoassets. But the United States SEC has decided to crack down by forcing cryptocurrency companies to review their practices. Most recently, the Kraken Exchange agreed to pay a record fine of $30 million for practicing staking.
Cathie Wood sucks that the SEC crackdown penalizes American competitiveness in the crypto sector.
In fact, foreign platforms could take advantage of regulatory differences between countries to gain an advantage.
This trend is particularly worrying for the United States, which risks losing its leading position in the cryptocurrency sector to more permissive countries.
“So is the activity shifting to offshore trading or to self-ownership, self-sovereignty and self-control? Decentralization wins. Great ! Given regulatory arbitrage, however, US exchanges are losing to foreign exchanges, which is not very good for US competitiveness in crypto revolutions, in my opinion.. »
Staking ban promotes decentralization of Ethereum
The crypto universe has been in turmoil since the fine suffered by Kraken. Bitcoin and the majority of other cryptocurrencies fell in response to the news.
However, economist and crypto trader Alex Kruger agrees with Wood. According to Kruger, this decision could have an unexpected impact on the decentralization of Ethereum (ETH).
Indeed, by preventing US exchanges from offering staking services, the SEC could be unwittingly helping to make Ethereum more decentralized. This would certainly provide new opportunities for investors around the world.
“A positive narrative twist for later: the ban on US exchanges and depositories from offering staking services pushes staking off-chain or offshore [ce qui signifie] that ETH is no longer centralized and in the grip of US regulators. Decentralized ETH is better ETH. »
Cryptocurrency regulations are constantly evolving to address the risks of this booming industry. Governments seek to establish clear regulatory frameworks. However, it is important not to stifle creativity and competition. The coming months will be key for the future of the cryptocurrency industry, with the White House growing impatient.
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