Is America going to end digital currencies?

In the past 3 years, most of Andrew Durgee’s companies in which he invested were located in the United States, but this year, he estimates that due to the country’s growing opposition to digital assets such as crypto-currency and tokens, only one in ten companies is based in the United States. Invest in digital currencies.

Mr. Durgee, CEO of Crypto for Tech firm Republic said:

The US court has set its sights on banning cryptocurrency investment and the ambiguity in legislation increases the risk of cryptocurrency investment in America.

The cryptocurrency sector has been under pressure due to falling prices over the past year and further losses from several world-renowned identifiers such as FTX, which was managed by crypto king Sam Bankman Fried. Sam Bankman Fried was indicted in the last few months for running the largest financial fraud in American history.

Under the influence of these disturbances, the regulatory body of the United States of America has accelerated its litigation for cryptocurrency. Officials in the country have acknowledged that their efforts have been under surveillance since 2017 and that their activities are in violation of the country’s laws intended to protect investors.

These organizations also made various accusations claiming that the company was not properly registered with the authorities and did not provide reasonable clarification about its activities. In some cases, higher damages due to consumer budget mismanagement and fraud have also been cited.

Bitcoin, which is known as the most valuable cryptocurrency in this area and the value of thousands of other currencies is also connected to it, is recognized by official authorities as an asset like gold; This means that the value of Bitcoin remains unaffected by the current exchange regulatory body and depends on the question of what is considered a “bond”?

These efforts have only trapped companies offering tokens and coins to raise revenue, and increasingly, exchanges where digital assets are traded often hold client assets and engage in other activities that Separated from traditional finance.

The culmination of this month’s crackdown is legal and has been brought against the biggest cryptocurrency market platforms, Coinbase and Binance. Gary Genster, CEO of the Securities and Exchange Commission, defended this month’s actions, comparing the current state of the industry to 1920; A time before America implemented many of the laws in question.

Meanwhile, Will Paige, an analyst at Insider Intelligence, pointed out that cryptocurrency market sentiment has been stable for further adoption since 2021, when the industry is estimated to be worth more than $US3 trillion ($2.4 trillion). has weakened

Will Paige said:

Trust in the system of buying and selling cryptocurrencies is associated with a low slope and this situation will worsen in the future.

As lawsuits and lawsuits surfaced, clients pulled billions of dollars out of the trading firm, and American banks restricted their cooperation with Binance, forcing the exchange to stop accepting US dollars.

Meanwhile, exchange program Robinhood announced that it no longer plans to list the names of the digital assets mentioned in the lawsuit on its exchange system, and this move has created uncertainty around the issue of tokens.

Critics also did not rest in this chaos and criticized the Securities and Exchange Commission, which is managed by Gary Genster, for strengthening and prospering its position. They also acknowledged that despite industry efforts to introduce new rules, the agency refused to recognize the distinction between different types of crypto businesses and technology such as automated decentralized processing, which continues to be a challenge for the platform.

Bart Stephan is the managing partner of Blockchain Investment Company, and this company has invested in hundreds of cryptocurrency companies by accepting the high risk of the market, and in his opinion, the current state of the cryptocurrency market is a boring and dangerous experience.

He also explained that he has faced difficulties in finding banks for his business and without a doubt, with the setting of new laws, there will be a possibility of politics attacking this area.

Bill Hughes, a senior consultant at Consensys, a Texas-based software company that uses crypto-blockchain technology, described the state of digital currency in the United States as unsettled and said:

The US Securities and Exchange Commission has decided that digital currencies will no longer exist in this country.

But the main problem that exists next to the actions of the US Securities Exchange Commission to destroy this industry is that according to estimates, 1 out of every 6 people in the United States has invested in cryptocurrency. On the other hand, the crypto market cap is roughly a third of what it was at its peak. In addition, the decrease in the volume of transactions and the interest and confidence of investors has caused this industry to be in a state of disarray.

Hillary Allens, a law professor at American University, believes that digital currencies are inherently susceptible to boom and bust cycles as well as manipulation by whistleblowers and should be banned and closed. He explained that the actions of the US Stock Exchange could help limit and re-exclusively monopolize crypto to tech enthusiasts, as well as reduce the scope of the industry.

At the end of his words, he said:

If we combine these actions with a decrease in public confidence and a decrease in willingness to take risky investments, there may not be a future for cryptocurrency.

Among these cases, Mr. Stephans, who has been in the cryptocurrency market for 2 years, believes that the future of cryptocurrency will be bright and hopeful. If the risk goes abroad, the current US approach will be more serious than other jurisdictions, including the UK and Europe. He also mentioned the price of Bitcoin, which has been suspended since 2020, but has grown significantly since the beginning of this year; Meanwhile, Ethereum has also grown.

Many cryptocurrency activists hope that the decision of the US Securities and Exchange Commission will be postponed and, accordingly, they hope to get respite from the court; From the US Congress, where a draft law for the cryptocurrency industry is being considered, to the White House, which could lead to a change in this law.

Angela Walch, a research fellow at the College of London, said:

We are at an inflection point and the defining of the cryptocurrency industry is about to begin.