Regulatory pressures in the U.S. are impacting not only the cryptocurrency industry but also major payment companies like Visa and Mastercard. Balaji Srinivasan, the former CTO of Coinbase, documented the legislative body’s stance against the Meta-backed Libra project. This situation is increasing uncertainty within the cryptocurrency world.
Visa and Mastercard Under Scrutiny Due to Libra Project
Srinivasan shared a letter on social media platform X regarding companies associated with the Libra project. The letter revealed that Senators Brian Schatz and Sherrod Brown issued regulatory threats to Visa, Mastercard, and other payment providers. Srinivasan stated that these threats played a significant role in companies withdrawing from the project.
Terry Angelos, former Senior Vice President of Crypto and Fintech at Visa, confirmed that the pressure altered the company’s strategy. He expressed that messages sent by Democratic leaders limited Visa’s crypto efforts. As a result of the risks posed by the regulatory environment, companies are compelled to take cautious steps.
New Administration and Potential Changes
With Donald Trump’s term ending on January 20, there is speculation about potential changes in regulatory approaches. The appointment of Elon Musk and Vivek Ramaswamy to the Department of Management Efficiency has drawn attention. Musk argued that this process, labeled “Operation Chokepoint 2.0,” is unlawful, while Srinivasan described it as rooted in “violation and penalty invention.”
Crypto leader John Deaton called for a thorough investigation of the implementation. He emphasized that regulatory pressure affects not just cryptocurrencies but also technology giants. The burden of oversight on companies like Visa and Mastercard has led to their complete withdrawal from the Libra project.
Regulatory moves in the U.S. are shaping future strategies in the technology and finance sectors. Companies must navigate this environment with flexibility and compliance with regulations. Consumers are closely monitoring the effects of these developments on their services.
