The crypto industry is currently in a precarious position, teetering on the edge of uncertainty. Without swift action, it risks a potential downfall. The US government’s stance towards most crypto assets, excluding Bitcoin, is hostile. Even more concerning is the mounting pressure on companies embracing the trend of relocating outside the US in search of more favorable regulatory environments.
SEC’s role is discouraging investors as they think they are disjointed and politically charged; small investors have a simple request: give me my freedom to engage in digital assets via a clear set of rules that will make it easy. The series of lawsuits filed against big players by the US SEC has added to the trauma that significantly harmed the crypto and broader Web3 industry.
SEC is missing collaboration and communication to frame regulations— two key components that can save the crypto industry.
Ripple CEO Garlinghouse Leads Global Search
Notably, Ripple’s CEO, Brad Garlinghouse, has openly expressed dissatisfaction with the regulatory environment in the US. In response, he announced that Ripple will focus its recruitment efforts in Dubai, London, and Singapore—regions known for transparent and crypto-friendly regulatory frameworks. This strategic shift indicates a broader trend, with other CEOs considering similar moves to bypass competition from US investors.
Pro-XRP Lawyer John Deaton Weighs In
Prominent pro-XRP lawyer John Deaton has shed light on this growing trend, revealing that he’s been in discussions with two other CEOs contemplating international expansion to sidestep regulatory hurdles in the US. All this is because the SEC, particularly Chairman Gary Gensler, has been criticized for its restrictive stance on the crypto industry; his role in Coinbase is also controversial, contributing to this current market shift.
Wendy O, a cryptocurrency YouTuber, has also said similar things that the SEC’s actions are unwarranted for cryptocurrency business in the United States.
SEC’s Assumptive Approach Killing Crypto
Gensler’s assertion that all cryptocurrencies, apart from Bitcoin, should be treated as securities has generated huge debate. While this viewpoint isn’t legally binding, the SEC’s actions align with this interpretation, leading to legal action against major exchanges like Coinbase and Binance.US.
Critics argue that such actions stifle innovation and growth within the US crypto sector. While John Deaton said, the SEC Chair is acting above the supreme court. Mocking the entire legal system in the US and making small investors suffer in the legal complexities.
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