The crypto industry is currently in a precarious position, facing mounting pressure from the US Securities and Exchange Commission (SEC). The SEC’s hostile stance towards most crypto assets, excluding Bitcoin, is discouraging investors and stifling innovation within the US crypto sector.
SEC’s role is discouraging investors as they think they are disjointed and politically charged; small investors have a simple request: give me my freedom to engage in digital assets via a clear set of rules that will make it easy. The series of lawsuits filed against big players by the US SEC has added to the trauma that significantly harmed the crypto and broader Web3 industry.
In response to the SEC’s actions, a growing number of crypto CEOs are considering relocating their businesses outside of the US. This is a significant development, as it indicates that the US is losing its competitive edge in the global crypto market.
SEC is missing collaboration and communication to frame regulations— two key components that can save the crypto industry.
Ripple‘s Garlinghouse Leads Global Search
Notably, Brad Garlinghouse, the CEO of Ripple, has publicly expressed his dissatisfaction with the regulatory environment in the United States. In response, he announced that Ripple will focus its recruitment efforts in Dubai, London, and Singapore—regions known for their transparent and crypto-friendly regulatory frameworks. This strategic shift signals a broader trend, with other CEOs contemplating similar strategies to circumvent competition from US investors.
Also Read: Ripple Labs Expands Operations Globally Amid SEC Legal Battle
What’s With the International Expansion? Cause to Worry?
Prominent pro-XRP lawyer John Deaton has shed light on this growing trend, revealing that he’s been in discussions with two other CEOs contemplating international expansion to sidestep regulatory hurdles in the US. All this is because the SEC, particularly Chairman Gary Gensler, has been criticized for its restrictive stance on the crypto industry; his role in Coinbase is also controversial, contributing to this current market shift.
Wendy O, a cryptocurrency YouTuber, has also said similar things that the SEC’s actions are unwarranted for cryptocurrency business in the United States.
Is Crypto Slowly Dying in the US?
Gensler’s assertion that all cryptocurrencies, excluding Bitcoin, should be treated as securities has sparked extensive debate. While this perspective lacks legal binding, the SEC’s actions align with this interpretation, resulting in legal actions against major exchanges like Coinbase and Binance.US. Critics argue that such actions impede innovation and hinder growth within the US crypto sector.
Read More: Gary Gensler’s Crypto Crackdown Under Fire: What’s Expected on the September 27th Hearing?
John Deaton goes as far as to claim that the SEC Chair is overstepping boundaries, potentially mocking the entire US legal system and causing unnecessary complexities for small investors.
Do you think the SEC is overstepping its boundaries?
Source: https://coinpedia.org/news/significant-threat-looming-crypto-top-ceos-might-leave-us-says-john-deaton/