• Crypto investor and venture capitalist Chamath Palihapitiya believes that crypto in America is dead due to the actions of the SEC.
• He takes issue with men like Gary Gensler who are blaming the crypto industry for the present banking crisis we’re seeing in America.
• Palihapitiya mentioned Coinbase as an example, saying that they played by the rules yet were still far away from getting a license.
Crypto Isn’t Doing Well In America
Chamath Palihapitiya, early crypto investor and venture capitalist, recently made a statement regarding the state of crypto in America – it’s dead. He blames this on U.S financial agencies such as the Securities and Exchange Commission (SEC) going after companies like Coinbase and not likely to stop until crypto is gone. Palihapitiya also took issue with people like Gary Gensler, head of the SEC, who are blaming crypto for current banking issues in America.
The attacks on cryptos intensified last November when leading digital currency exchange FTX became bankrupt. Allegations arose claiming Sam Bankman-Fried -the man behind the company- had taken user funds and used them to pay off loans or invest in Bahamian luxury real estate. He is now awaiting trial at his parents‘ California home.
Coinbase Playing By The Rules
Palihapitya has expressed his disappointment with how even companies playing by all of the regulations can still be targeted by agencies like the SEC. As an example he brought up Coinbase, saying that they have done everything right from board composition to executive composition to trying to interact properly with regulators but are still furthest away from getting a license while fraudulent companies seemed closest to their goal before being caught out.
Brian Armstrong Moving To Bermuda?
Brian Armstrong – head of Coinbase – said he was exploring moving his firm to Bermuda because of all these issues which would make it much easier for him to keep innovating without interference or regulations stopping him every step along the way .
It appears that no matter how hard these companies try they cannot escape regulation from agencies such as the SEC which has put a damper on further innovation in this space unfortunately leavingcrypto dead in America according to Palihapitiya .