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The regulatory pressure that cryptocurrencies face in the US region also has a highly detrimental effect on prices. The potential lawsuit by the US Department of Justice against Binance, the largest cryptocurrency exchange in terms of volume, has undermined risk appetite this month. Moreover, the outcome of many ongoing cryptocurrency cases remains uncertain.
Expert Opinion on Cryptocurrencies
Michael Sonnenshein, the CEO of Grayscale Investments, is dissatisfied with the current problem-solving method of the US Securities and Exchange Commission (SEC). The regulatory agency, which has filed numerous cryptocurrency lawsuits, has caused significant losses for investors. During the same period, the SEC either did not see or turned a blind eye to the irregularities occurring on the FTX exchange under its control.
During a recent interview with Fox Business, Sonnenshein stated that the SEC’s constant use of sanction actions against the industry could drive crypto companies out of the country. Many US-based crypto giants have already faced or are apprehensive about facing the SEC. Giants such as Ripple are considering moving to crypto-friendly regions like Dubai.
The Mistakes of the US in Cryptocurrency
As some Republicans have criticized, the country’s current cryptocurrency policy is detrimental to innovation. While the US gained dominance in the technology field by supporting innovation, adopting such contradictory policies reveals negative discrimination against crypto. The CEO of Grayscale, whose lawsuit against the SEC regarding ETF is ongoing, said the following:
“If every crypto issue has to go to court, then we are stifling innovation happening here as a country.”
He also stated that providing clearer regulatory guidelines for crypto commodities, crypto securities, and stablecoins, along with different definitions, would prevent businesses from moving out of the US.
“Bringing more clarity to this issue will ensure that companies and individuals working on crypto do not leave the US because our regulatory environment is hostile towards the asset class, while many other countries embrace it.”
Similarly, Ripple CEO Brad Garlinghouse reiterated similar comments before Ripple’s partial victory decided on July 13. Garlinghouse expressed that the SEC is “trying to kill innovation” in the US and noted that the outcome of Ripple’s case is just the beginning of many other cases.
Sonnenshein has a positive outlook on ongoing developments in Congress to provide regulatory clarity to the industry.
“Most of the legislation that Congress can pass in a very good way can provide the real clarity the industry needs to move forward in embracing crypto.”
