- The U.S. is caught in a pivotal position regarding the development of the crypto space.
- Their current approach is in opposition to their antecedent of aiding tech inventions.
- They stand the possibility of losing crypto talent if their approach doesn’t become more favorable.
Crypto development has recently stalled in the United States. This is somewhat ironic, as it is a global pioneer in the technology sector. The ongoing regulatory controversies, instability and crashes have been touted as evidence of why it shouldn’t be adopted in the banking space.
Currently, the United States uninspiring approach to crypto has been firmly criticized by cryptocurrency lovers and fans globally. Fears abound that unless a change of narrative happens, the nation can lose the potential to monetize on this multi-trillion-dollar industry.
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For donkey years, the U.S. has been a trailblazer in technology on a worldwide level. Hence, their unwillingness to support the industry is, to many, dismaying.
How the U.S. Has Disappointed the Crypto Industry
Every coin has two sides – two options to choose from. Unfortunately, as positively revolutionary as the internet has been, it has also been the breeding ground for many vices.
A similar case can be made for the digital asset space, as it is a harbinger of financial freedom but also susceptible to volatility and scams. Typically, you don’t throw the baby with the baby water, but the U.S. has looked likely to.
In the previous months, the SEC – a primary American financial regulator – has been clamping down on crypto firms. However, it has come under a barrage of criticism as its disclosure rules are reportedly said to apply only to traditional markets, not digital ones.
Yet, the SEC is given free rein to do as it pleases. As a result, numerous crypto firms, influencers and executives have been caught in its cross-hairs, namely, Beaxy, Terraform Labs, Justin Sun, Akon, Lindsay Lohan, Kraken, Nexo Capital, Gemini Trust, etc.
Most recently, there has been a lengthy case between SEC and Coinbase. The former thinks the latter is offering unregistered securities, which has been denied.
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The SEC issued Coinbase a Wells notice, just like it did for Paxos earlier in the year. Although such an action reduced Coinbase’s shares, it vowed not to change any aspect of its operation.
Consequently, there have been back-and-forth arguments and counter-arguments, with the latest action being Coinbase asking a federal court to force the SEC to respond to a petition it filed last year regarding regulatory clarity.
How other Countries have embraced crypto
While the U.S. has stalled the crypto industry’s growth, other countries like Hong Kong, Australia, Japan, Singapore and the United Arab Emirates have been making giant strides to assist in its progress.
The consensus is that if the U.S. doesn’t brace up soon, it can lose its technological innovation to other countries.
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An example is the U.K. and how, due to its struggles with evolution, restrictions and transparent regulations, have been toppled by France as the European frontier for digital currency activities. Circle, the issuer of USDC, recently appointed France as its official headquarters, and France’s stock exchange also surpassed the former’s.
What is the way forward for the U.S.?
The U.S. President, Joe Biden in 2022, called for a unified approach to digital assets’ regulation. However, little to no progress has been recorded since then, with controversies arising now and then.
One such controversy is the confusion about which regulator is the foremost – the CFTC or SEC.
For the U.S. to maintain its position at the forefront of technology, it must glean from history and adopt a balanced and collective regulatory principle that would boost the crypto industry’s growth. Furthermore, embracing the new phase of tech with crypto would enable the U.S. to reap the socio-economic profits of being a leading light.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.