According to longtime bitcoin bull Chamath Palihapitiya, “crypto is dead in America.”
Entrepreneur and technology investor Chamath Palihapitiya has a far more cautious outlook on cryptocurrencies now than he had two years ago when he said that bitcoin has replaced gold and forecasted that it will rise to $200,000 in value.
In the most recent episode of the All-In podcast, Palihapitiya declared that “crypto is dead in America.”
Palihapitiya attributed a big portion of the death of cryptocurrency on regulators, who have been much more active in their pursuit of the industry’s bad actors. Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), has stated that stringent U.S. securities regulations should be followed by crypto trading platforms. Gensler recently implied there has been a strong connection between the failure of Silicon Valley Bank and the cryptocurrency business when responding to inquiries from senators.
Palihapitiya remarked that
You had Gensler even blaming the banking crisis on crypto. The American government has pointed its guns squarely at crypto.
Despite claiming that the United States certainly sees cryptocurrency as a danger to its “establishment,” the tech investor did see several problems with the industry:
To be fair to the authorities, more than any other startup economy sector, the crypto industry “did push the boundaries.”
He concluded his study by saying that the excellent actors are currently “paying the price” for FTX’s and other companies’ subpar performance, which has hurt the reputation of the sector.
“The bill has become due for them,” he continued.
The SEC has stepped up its action against the cryptocurrency market, pursuing firms and initiatives it claims were peddling unregistered securities.
The agency put up regulations in February that would alter which cryptocurrency businesses may hold client money. The SEC warned cryptocurrency exchange Coinbase in March that it had discovered possible breaches of US securities law. This is normally the last action before the SEC brings charges.The SEC accused Bittrex, a platform for exchanging cryptocurrency assets, and its former CEO last week of running an unlicensed exchange.
One of the show’s co-hosts, David Sacks, said that the United States may be seeking to suppress cryptocurrency because it may threaten the supremacy of the dollar:
I think it’s probably not a coincidence that you’re seeing all these concerns about de-dollarization at the same time they’re cracking down on crypto.
However, Sacks hinted that the overall effect will be bad since moving cryptocurrency firms overseas will be “terrible for American innovation.”
Brian Armstrong, the CEO of Coinbase, told CNBC that his business is ready for a protracted legal battle with the commission and that, if more regulatory clarity is not obtained, it may consider moving outside of the United States. In the meanwhile, Bittrex has already made the announcement that it would cease U.S. operations owing to “continued regulatory uncertainty.”
During his four hours of congressional testimony last week, Gensler received similar criticism from House Republicans on the agency’s crackdown on cryptocurrency platforms.
Rep. Patrick McHenry, R-North Carolina, chairman of the House Financial Services Committee, stated that “regulation by enforcement is neither sufficient nor sustainable.” “You’re punishing digital asset firms when they don’t know the law will apply to them for allegedly breaking it,” The SEC’s strategy, according to McHenry, “drives innovation overseas and endangers American competitiveness.”
The agency’s activities were defended by Gensler.
“We have a clear regulatory framework built up over 90 years,” he said, adding that the exchanges “are generally noncompliant, and they need to come into compliance.” In November 2021, when the Federal Reserve’s benchmark interest rate was close to zero and investors were pouring money into risk, Bitcoin, the most popular cryptocurrency, hit a new high of roughly $69,000. As the Fed started gradually raising rates to combat inflation last year, the market altered dramatically.
Palihapitiya projected on CNBC in early 2021 that bitcoin will increase from its current price of $39,000 to $100,000 and then up to $200,000. He also projects Bitcoin will reach $1 million in the next 10 years.
Some observers have referred to the current situation of U.S. government crackdowns as “Operation Choke Point 2.0” – a purported coordinated attempt by authorities to dissuade banks from keeping cryptocurrency or offering services to cryptocurrency businesses.
Palihapitiya was perplexed to learn that Coinbase, a platform for trading digital assets that he claims “played by the rules, stood in line,” and “tried to do the right things,” wasn’t any closer to regulatory certainty than the now-defunct FTX.
The SEC sent Coinbase a Wells notice in March, which generally indicates that the agency intends to take legal action against the company for alleged breaches of U.S. securities laws. Brian Armstrong, the CEO of Coinbase, said that the exchange will be prepared to go to court if one is brought.
“How is it even conceivable,” questioned Palihapitiya. Sacks said that Sam Bankman-Fried, the former CEO of FTX, “had skills in gaming the system.”
“I’m not sure when that was,” he said. “Five years, ten years—it will eventually get there. And the reason is because every time something like this occurs, it serves as a stark reminder that our leaders are no longer as dependable as they once were.”
Just before the peak in later 2021, he said that Bitcoin had “effectively replaced gold.”
Bitcoin is priced at the moment at a little over $27,300 right now, and it’s selling at a 60% loss from its all-time high in 2021. However, cyclical movements in crypto are normal and bear markets have always followed bull runs. The bear market has shown signs of having reversed and it’s currently in an uptrend, many indicators signaling that a new bull run has already begun.
Love Hate Inu – Newest Meme Coin
- Decentralized Polling – Vote to Earn
- Early Access Presale Live Now
- Ethereum Chain
- Mint Memes of Survey Results as NFTs
- Staking Rewards
- Viral Potential, Growing Community