The United States has squeezed the life out of cryptocurrency, says billionaire tech investor Chamath Palihapitiya.
In a recent episode of the All-In podcast, Chamath Palihapitiya, a Bitcoin bull and billionaire investor, boldly declared that "crypto is dead in America."
The statement was a reaction to the news that prominent crypto exchange Coinbase is considering moving overseas.
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Moreover, Palihapitiya was completely shocked that Coinbase, a platform that he claims has always followed the rules and tried to do the right thing, is no closer to regulatory clarity than the now-bankrupt FTX.
It is worth noting that the SEC recently issued a Wells notice to Coinbase. According to Coinbase CEO Brian Armstrong, the crypto exchange will be prepared to take the matter to court if necessary.
Palihapitiya blames Gary Gensler, the chair of the US Securities Exchange Commission (SEC), for the current state of crypto in the country. The billionaire pointed out that Gensler is even attributing the banking crisis to crypto, forcing American authorities to take a firm stance against the industry.
While acknowledging that the US likely perceives crypto as a threat to its "establishment," Palihapitiya admits the crypto sector has pushed the boundaries more than any other part of the startup economy.
In fairness to the regulators, [the crypto sector] did push the boundaries more than any other sector of the startup economy.
In his opinion, this has led to the good actors in the industry "paying the price" for the misdeeds of companies like FTX, which have tarnished the sector's reputation.
During the podcast, co-host David Sacks suggested that the US might be trying to suppress crypto adoption to maintain the dominance of the US dollar.
I think it’s probably not a coincidence that you’re seeing all these concerns about de-dollarization at the same time they're cracking down on crypto.
All-In co-host David Sacks believes that pushing crypto companies offshore will have a negative impact on American innovation.
The future of crypto in the United States appears to be uncertain, as regulatory pressures threaten the industry's survival.
