Bitcoin Bull Chamath Palihapitiya Claims Crypto Is Dead in America

Chamath Palihapitiya, a prominent Bitcoin bull, has claimed that cryptocurrency is dead in America. Palihapitiya, who has previously been a vocal supporter of Bitcoin, made the statement during an appearance on CNBC. He cited regulatory uncertainty and lack of institutional adoption as key reasons for the decline of crypto in the United States. Palihapitiya’s comments have sparked debate among the cryptocurrency community, with some agreeing with his assessment while others remain optimistic about the future of crypto in America. Despite the current challenges facing the industry, many experts believe that cryptocurrency has the potential to revolutionize the financial world in the coming years.

Chamath Palihapitiya: Still a Believer in Bitcoin, But Crypto Is Dead in America

Chamath Palihapitiya, the host of the well-known “All In” podcast and an experienced venture capitalist, has been a long-time believer in fledgling companies and causes. He has invested in successful startups such as Slack and Yammer, and has championed Bitcoin and its march to $200,000 in the world of venture capitalists in recent years. Nevertheless, as reported by CNBC, Palihapitiya expressed his disappointment in the current status of the crypto industry. According to Palihapitiya, the future of crypto lies elsewhere, due mostly to the actions taken by regulators.

Regulators Stifled Growth

Palihapitiya criticised regulators for stifling the growth of the crypto industry. The US authorities have aimed their guns at crypto, and in doing so, have been probably the most threatening to the establishment. They were the ones that pushed the boundaries further than any other sector of the start-up economy. Palihapitiya’s disappointment stems from the belief that despite the potential of Bitcoin and cryptocurrencies, regulatory and legal uncertainties, coupled with the lack of a clear framework, may result in the loss of innovation, driving crypto overseas and endangering American competitiveness.

Still a Believer

Although Palihapitiya has expressed his dismay at the current state of affairs, he has made it clear that he still believes in Bitcoin and cryptocurrencies at large. The future growth of the industry lies elsewhere, whether in Europe, Asia, or the world at large, an opinion also expressed by Republican stalwarts such as Financial Services Committee Chairman Patrick McHenry, who lambasted SEC Chairman Gary Gensler during a testimony before Congress.

Regulation by enforcement is not enough nor sustainable. Punishing digital asset firms for allegedly not adhering to the law when they don’t know how it applies to them, is driving innovation overseas and endangering American competitiveness. In turn, Gensler has decided to stick to his guns and apply for more funding in order to police “the wild west that is crypto.”

Consequences for the SEC’s actions have already started to surface, as firms like Coinbase and Bittrex have allegedly started making contingency plans for a move abroad. Both firms – as well as countless other firms across the industry – have repeatedly expressed their willingness to be compliant and join the larger world of financial services as equals. Unfortunately, they cannot ensure complete compliance in the absence of well-defined laws pertaining to cryptocurrencies. In conclusion, it seems that regulators’ actions may force the crypto industry to seek alternative havens abroad.

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