Cryptocurrency is Dead in America': Tech Billionaire Chamath Palihapitiya
US Regulators Have Killed the Crypto Industry, According to Bitcoin Bull and billionaire tech investor Chamath Palihapitiya.“Crypto is dead in America,” he boldly declared on his April 22 All-In podcast.
Palihapitiya's Comments Came in Response to News That Cryptocurrency Exchange Coinbase is now Considering Offshore. Rypto is from in the us. I mean, Now Gensler is Even Blaming Crypto for the Banking Crisis so the us authorit ies are firmly on crypto.” While Palihapitiya said the US may view cryptocurrencies as a threat to its “system,” the tech investor did blame some mistakes on the industry: “In fairness to regulators, [the crypto sector] really pushes boundaries more than any other sector of the startup economy.”
He rounds out his analysis by concluding that good actors are now "paying the price" for the poor work done by FTX and other companies that affect the industry's reputation. "Their bills are due," he added. One of the show's co-hosts , David Sacks, suggested that the US may be trying to kill cryptocurrencies as it threatens to erode the dollar's dominance:
“I think it’s probably not a coincidence that you’re seeing all these concerns about dedollarization at the same time as you’re cracking down on cryptocurrencies.”
But the overall impact would be a net negative, hinting at Sachs, who believes pushing crypto companies overseas would be "terrible for American innovation." Other commentators have described the issue at hand as "Operation Choke Point 2.0" an allegedly orchestrated effort by regulators To prevent banks from holding cryptocurrencies or providing services to cryptocurrency companies.
Palihapitiya is confused about how Coinbase which he says is a digital asset trading platform that “follows the rules, plays by the rules” and “trying to do the right thing” is no closer to regulatory clarity than the now bankrupt firm FTX.
"How is this possible," Palihapitiya asked. Sacks replied that former FTX CEO Sam Bankman-Fried "has a knack for playing the system." In March, the SEC issued a Wells notice to Coinbase which typically means the regulator plans to take legal action over the company's possible violations of US securities laws. If a lawsuit is filed, Coinbase CEO Brian Armstrong said the exchange would be prepared to file a lawsuit.
