The executives at crypto companies such as Ripple company piled on with comments on the US Securities and Exchange Commission. They signaled plans to shift business overseas to rally support. They also gave a message to the US politicians concerning that the country can miss out on major technological innovation.
Brian Armstrong (Coinbase CEO) said that in the past week that the US Securities and Exchange Commission was on a crusade with tough actions against some crypto companies.
Europe and Dubai have proved far better markets with their virtual asset regulatory frameworks.
Garlinghouse (CEO of crypto company Ripple), Armstrong, and other crypto leaders made threats to leave the U.S.A. They have highlighted concerns from the industry that the U.S. Securities and Exchange Commission’s crackdown is slowly growing to be too harsh. The regulator had taken tough enforcement action against crypto companies like Coinbase, Ripple, Kraken, and Paxos. They had accused these crypto companies have flouted securities laws.
Brian Armstrong (Coinbase CEO) told CNBC that the US Securities and Exchange Commission is a bit of an outlier here. He said that he does not think Chair Gary Gensler of the US Securities and Exchange Commission is trying to regulate the industry as much as may curtail it.
Brad Garlinghouse (CEO of crypto company Ripple) said that he finds it sad, as a company that started in the USA and also as somebody who is a USA citizen.
In April 2023, because of the several crypto regulatory crackdowns in the USA, many companies started looking for opportunities in several other countries where the cryptocurrency laws are better and more well-defined. Some companies have shut down their operations in the region. Moreover, some other companies have shown their desire to leave the USA’s market because of the fines and regulatory concerns.
There are many ambiguous areas in crypto regulation, and it is tough for a region to pass laws while maintaining the idea of decentralization.
Recently, many criticized the US Securities and Exchange Commission Chairman Gary Gensler for punishing cryptocurrency firms through regulations without providing much of a well-defined path to compliance.
As a result, only time can tell if the USA will like to adopt a well-known cryptocurrency framework. At the same time, failure to do so may increase the number of companies who are looking for opportunities elsewhere in the world.
What is Cryptocurrency?
A cryptocurrency or crypto is a digital currency with a decentralized system. It is designed to function as a medium of exchange over a computer network.
It verifies that the parties transacting money have the money they claim. Also, it eliminates the requirement for traditional intermediaries like banks when funds are transferred between 2 entities.
The individual coin ownership records are stored and kept in a digital ledger. This is a computerized database that uses cryptography to secure transaction records.
Despite their name, cryptocurrencies are not currencies in the traditional sense. They can be classified as securities, commodities, and virtual currencies. Cryptocurrencies are seen as a distinct asset class.