U.S. may lose their position of a leading cryptocurrency market
U.S. congressmen have proposed amendments to a draft law on stablecoin that would strip the SEC of the right to control the asset class. The changes do not apply to algorithmic “stablecoins” and focus on assets that are used in payments.
“I am disappointed in the SEC’s approach to digital assets, especially stablecoins, and other aspects that do not provide clarity,” Arkansas Republican French Hill said.
Under the text of the bill, the SEC should transfer its authority to federal and state regulators of banking institutions and credit unions. Also, the Republicans proposed to conduct audits among the issuers of stablecoins to check the security of such assets.
U.S. jurisdiction, analysts say, is really not the most favorable for cryptocurrency projects because of the tough stance of the SEC. Earlier, Coinbase allowed a change of jurisdiction due to regulatory gaps. Ripple is also considering relocating its business outside the U.S. due to a lengthy legal battle with the SEC.
Renowned investor Chamath Palihapitiya opined that U.S. regulators have “strangled” the crypto sector, which is currently “on the brink of survival.” According to the billionaire, U.S. authorities see digital currencies as a threat because the industry has pushed the boundaries far more seriously than other emerging areas of the economy.
“Cryptocurrencies are dead in America. SEC Chairman Gary Gensler blames crypto-assets even for the banking crisis, so it’s safe to say that the United States authorities have firmly pointed their guns at them,” Palihapitiya said.
In addition, he noted that the main blow is taken by the honest representatives of the digital asset market, paying the price for the bankruptcy of FTX and the collapse of cryptocurrency hedge funds, which tarnished the reputation of the entire industry.
Entrepreneur’s co-host on the All-In podcast, David Sachs, added that the U.S. government is trying to put pressure on crypto projects for fear that they could threaten the dollar’s dominance. But such a policy will only provoke cryptocurrency companies to leave for more loyal jurisdictions, and the country will be deprived of opportunities for innovation.
