April 19, 2024
Latest Cryptocurrency News

Tech Investor & Billionaire Chamath Palihapitiya Says “Crypto is Dead in America”

Tech investor and billionaire Chamath Palihapitiya declared during the April 22 episode of the All-In podcast, “Crypto is dead in America.”

This statement is a drastic U-turn from what Palihapitiya commented in early 2021, where he said Bitcoin would soar from $39,000 and climb to $200,000. Subsequently, in 2021, right before Bitcoin began peaking, Palihapitiya said Bitcoin has “effectively replaced gold.” Currently, the Bitcoin price is a tad over $27,300, down 60% from its all-time high.

Palihapitiya explained his revised approach to cryptocurrency is due to regulators, who have become more aggressive in pursuing the rotten apples in the industry. The US Securities and Exchange Commission (SEC) said that crypto trading platforms would have to comply with stringent US securities laws.

Palihapitiya’s comment came after news broke that the leading cryptocurrency exchange Coinbase was contemplating an offshore move. For this, Palihapitiya blamed Gary Gensler, Chair of the SEC.

SEC Ramps up Its Crypto Regulations

The SEC has started ramping up its regulations of the crypto industry, aggressively pursuing the companies and projects that are allegedly selling unregistered securities.

In February 2023, the agency proposed new rules that would change which crypto firms can have custody of customer assets.

Recently, the SEC issued Coinbase a Wells notice warning the company that it was under the scanner for potential violations of US securities law.

In the third week of April, the SEC came down on the crypto trading and asset platform Bittrex and its ex-CEO for running an unregistered exchange.

In this context, Palihapitiya said that the US authorities probably perceive cryptocurrency as a threat to their “establishment.” He, however, mentioned that the sector has some faults too.

Palihapitiya further said that the authentic actors are now paying the price for the bad work by FTX and other firms that have dented the industry’s reputation.

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