- U.S. crypto regulations remain a cause for concern for industry participants.
- Messari CEO Ryan Selkis has highlighted that the U.S. could play a key role in the industry.
- The crypto exodus may already be happening.
The crypto regulatory scene in the United States has become a cause for concern for the industry in recent years. With the regulatory environment riddled with uncertainty, each of the top three crypto exchanges by 24-hour trading volume – Binance, Coinbase, and Kraken – have had a brush with U.S. market regulators in the last three months alone.
In several instances, enforcement action from the Securities and Exchange Commission and the Commodities Futures Trading Commission has come with conflicting classifications of crypto assets. The growing confusion has led industry leaders to predict that blockchain innovation will leave U.S. shores in search of friendlier climates.
Should the Industry Move Offshore?
In a two-part Twitter thread on Sunday, April 23, Messari Chief Executive Officer Ryan Selkis argued that simply moving the industry to regions with friendly regulations was a “short-term” and “costly view.
Selkis highlighted that the U.S. hosts the largest financial market, controls the world’s reserve currency, the U.S. dollar, plays host to the world’s leading software companies, and has civil liberties such as freedom of speech enshrined in its constitution.
The Messari chief asserted that the crypto industry could easily double its value and growth with clear U.S. regulations.
While Selkis suggested that the industry should invest about $100 million in a campaign to get lawmakers and regulators on their side, not all agree with this view; crypto trader “Duo Nine” insists that Bitcoin and crypto did not need a country to succeed.
Mask Network founder Suji Yan further emphasized that the intent behind the concept and development of crypto and blockchain technology was the pursuit of independence from the government.
Tom Howard, co-founder of crypto derivatives platform PowerTrade, claims that crypto firms will not survive under the U.S.’s current regulatory climate. According to Howard, the practical thing for firms to do is go abroad and build.
“Make it so good they can’t ignore you,” Howard tweeted. “Eventually they will beg for you to come back.”
An Exodus Already Underway?
In recent weeks, several U.S.-based crypto firms have declared their intention to strengthen their presence abroad.
Last week, Coinbase revealed that it had obtained a license in Bermuda with plans to launch a crypto derivatives trading platform incorporated on the small island as early as this week.
Days after Coinbase’s announcement, Gemini announced its own plans to open a fourth international office, this time in Gurgaon, India.
On the Flipside
- While the U.S. bickers on its crypto regulations, the European Union Parliament has already passed a clear regulatory framework for the industry.
- The United Kingdom expects to finalize its regulation plans within twelve months.
Why You Should Care
Though the U.S. has long been lauded as a leader in technological innovation, it risks fumbling the ball with crypto.
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