The crackdown of the United States on Cryptocurrencies and Crypto firms seems to stifle the crypto–related innovation and weaken the country and its currency. A day after Coinbase received a Wells “legal threat” notice from the Securities and Exchange Commission the industry experts started weighing the impacts of the regulatory actions on America’s Crypto. The Coinbase received notice a month after Paxos, a Stablecoin issuer received it.
The recent collapse of crypto and startup-friendly banks which have recently been in news namely Silicon Valley Bank (SVB), Signature Bank, and Silvergate are also seen as a part of the scheme of regulators to un-bank the crypto sector. This is popularly dubbed, “Operation Choke Point 2.0 “.
On March 20, the economic report by the White House provided a scathing review of the benefits of crypto assets. The paper dedicated almost a chapter talking about debunking crypto’s touted benefits. In talking with Cointelegraph, Greenspan stated that such regulatory actions about Cryptocurrencies can pave a way for the threat to the US dollar’s dominance. He also warned that such a crackdown on the USA would weaken Dollar’s global position.
While speaking to Cointelegraph, Adrian Przelozny, CEO of the Australian crypto exchange Independent Reserve also clearly stated that the recent failure of the banking sector is a result of banks’ irresponsible way of managing risks. Adding to it, Przelozny also stated that eyeing the benefits of the crypto industry can be a better way to look at it and would reap economic benefits. Alongside, Michael Bacina, a lawyer and partner at Piper Alderman also agreed to the fact that “the forced regulation” would “ drive off crypto–asset innovation.”
The industry experts also stated that such an approach towards cryptocurrencies would cost jobs and raise the risk for consumers and investors in the long run.
