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Conspiracy theorists have long predicted that central banks and governments would resist the rise of cryptocurrency as a competitor to fiat money. This prediction has gained some support from regulators, including former head of the Office of the Comptroller of the Currency, Brian Brooks.
In recent times, the US-based crypto industry has faced regulatory challenges. The Securities and Exchange Commission (SEC) has taken actions against regulated entities such as Kraken and Coinbase, while the Commodity Futures Trading Commission (CFTC) has sued Binance. These regulatory actions have put considerable pressure on the US crypto industry.
The Biden Administration’s “Economic Report of the President” downplayed the usefulness of cryptocurrency, highlighting industry fraud. Furthermore, the closure of crypto-friendly banks like Silvergate, Silicon Valley Bank, and Signature Bank, along with calls from politicians for a crypto crackdown, have fueled skepticism within the industry.
The recent closure of Signature Bank, with some industry figures suggesting it was part of an anti-crypto crusade, adds fuel to the fire. Former Congressman Barney Frank, who served on the board of Signature Bank, claimed that regulators wanted to send a strong anti-crypto message through the forced liquidation of the bank.
However, despite the challenges, the US judicial branch has pushed back against regulatory agencies like the SEC, suggesting deception and highlighting the damage done to the industry.
As a result, many in the crypto industry are exploring opportunities in jurisdictions that are more welcoming to innovation. This shift poses a significant threat to the US crypto industry and the country’s reputation as a land of freedom and innovation.
Looking ahead, it’s clear that the US government’s stance poses an existential threat to the nation’s cryptocurrency industry. The ongoing regulatory pressure indicates that 2024 might bring more challenges for the industry in the US.
This content is curated by Kadan Stadelmann, the chief technology officer of Komodo, an open-source technology provider known for its cryptocurrency wallet and decentralized exchange.
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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any organization.
