Regulators are “killing” the cryptocurrency industry in the United States, said Chamath Palihapitiya, billionaire founder of the venture-capital firm Social Capital, on the All-In Podcast.
“The industry is dead. [Head of the SEC] Gary Gensler accuses cryptocurrencies of causing the banking crisis — so American authorities have turned their weapons toward the sector,” the entrepreneur emphasised.
He noted that because of regulators’ actions, even the ‘rule-abiding’ bitcoin exchange Coinbase is considering a change of jurisdiction.
Nevertheless, thanks to regulatory policy, crypto startups have been able to push the boundaries further than players in other sectors of the economy, Palihapitiya noted.
According to him, the industry is paying the price for reputational damage inflicted by the fallout from FTX’s collapse and other large companies.
Craft Ventures partner David Saks said that the downturn will have “horrific consequences” for innovation in the United States. He called Coinbase’s operations the “gold standard” for crypto companies, a view Palihapitiya agreed with.
Earlier, Gensler faced criticism regarding his agency’s stance on digital assets during hearings before the U.S. House of Representatives.
Congressman Warren Davidson unveiled a bill that would remove Gensler from the post as SEC chair.