So far, nothing has succeeded in stopping regulators from cracking down on crypto businesses in the United States. In this regard, billionaire venture capitalist Chamath Palihapitiya criticized the SEC in a new episode of the All-In Podcast. He cited the main consequence of the actions of regulators on the crypto sector and the reason behind them. Here is what it is.
Regulators go after cryptos because they feel threatened!
Currently, the United States is crying conspiracy about the announced end of the dollar. Meanwhile, many players and analysts are criticizing their crypto regulatory measures. Chamath Palihapitaya is one of the latest personalities to have criticized the SEC for its way of regulating the sector. He stated : “Crypto is dead in America. Gensler even attributed the banking crisis to crypto. So US authorities have firmly pointed their guns at crypto“.
The venture capitalist billionaire suggested that regulators will eventually drive all crypto out with their behavior. He pointed out that they are suppressing the new asset class for a specific reason. The latter is that they view cryptos as a great threat to the current government and financial system.
Palihapitaya has explained : “I just think they were probably the most threatening to the powers that be, and in fairness to regulators, they pushed the envelope more than any other sector of the start-up economy. Today, they are paying the price. The invoice has expired“.
SEC wrong to go after Coinbase exchange, says Palihapitiya
According to Palihapitiya, the SEC shouldn’t give Coinbase a hard time like it does. The billionaire indicated that after all the crypto exchange does what it takes to comply with the rules of the regulator.
“Coinbase played by the rules, stood in line, tried to do the right thing. It seems like every step of the process […] was the furthest from obtaining a license. The one who came closest to it was the one who was the most fraudulent, namely FTXsaid Palihapitiya.
The actions of the SEC are holding back many crypto companies wishing to set up in the United States. Even Coinbase recently indicated that it is considering launching an exchange outside the country. In this context, Ripple said that the US should instead take a cue from the EU and the UK.
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