Crypto ‘Dead’ in US: SEC Crackdown on Crypto Trading Platforms

• Tech billionaire Chamath Palihapitiya recently declared that crypto is “dead in America” due to the US Securities and Exchange Commission’s harsh position on cryptocurrency trading platforms.
• Coinbase CEO Brian Armstrong has stated that his company is prepared for a legal battle with the SEC, while Bittrex has announced it will cease operations in the United States.
• Bitcoin’s total market cap remains nearly unchanged at $529 billion.

Chamath Palihapitiya Declares Crypto Is “Dead In America”

Tech billionaire Chamath Palihapitiya recently declared that crypto is “dead in America” due to the US Securities and Exchange Commission’s (SEC) harsh position on cryptocurrency trading platforms. According to Palihapitiya, authorities have become far more aggressive in their pursuit of industry bad actors, with SEC Chairman Gary Gensler blaming the banking crisis on crypto and proposing to bar financial advisors from trading in bitcoin. Numerous companies such as Bittrex and Coinbase Global Inc. have been charged for allegedly trading unregistered securities, and Palihapitiya does not provide a timeline for when he expects Bitcoin’s price to climb again.

Coinbase Ready For Court War

Coinbase CEO Brian Armstrong has stated that his company is prepared for a legal battle with the SEC and may consider leaving the United States if more regulatory clarity is not obtained. Meanwhile, Bittrex has already indicated that it will cease operations in the United States owing to “continued regulatory uncertainty”. Some lawmakers advocated for the formation of a new regulatory framework to prevent firms from expanding internationally.

Bitcoin Price Remains Unchanged

Despite all these developments, Bitcoin’s total market cap remains nearly unchanged at $529 billion according to data from TradingView.com

Palihapitiya Attributes Loss Of Faith To Rise Of Bitcoin

Palihapitiya believes that people’s loss of faith in leaders contributed significantly towards the ascent of Bitcoin prior to its current state of decline. He previously predicted two years ago that crypto, especially bitcoin, would replace gold and reach $200,000 but now appears considerably more wary about digital assets given recent events involving US regulators’ enforcement actions against cryptocurrency trading platforms.

Government Regulation Could Lead To Further Changes In Industry

It remains unclear what further changes could be made by authorities regarding cryptocurrencies and how this could affect prices or regulations surrounding digital asset exchanges moving forward into 2021 and beyond.