Billionaire Tech Investor Believes that Crypto is Dead in America
- Billionaire tech investor Chamath Palihapitiya claimed that “crypto is dead in America,” in a recent episode of the All-In Podcast.
- The comment came after the topic of the only publicly-listed crypto exchange, Coinbase, moving out of the US was up for discussion.
- He said that the US authorities have “firmly pointed their guns at crypto” and blame digital assets for the recent banking crisis.
- He said the US views the crypto sector as a threat to its “establishment” as it pushes the regulatory boundaries more than any other sector.
The United States has been known as one of the regions with the most crypto entrepreneurs and miners around the globe. Following the wider adoption of cryptocurrencies after the 2021 crypto market bull run, there has been a significant rise in the regulatory actions and crackdowns taken by the authorities in America against crypto firms and entities. Due to an unfit regulatory regime, billionaire tech investor Chamath Palihapitiya believes that “crypto is dead in America.”
The bold statement from Palihapitiya came on an episode of the All-In Podcast, a podcast hosted by John Calacanis along with Palihapitiya, David O. Sacks, and David Friedberg. The comment from the tech billionaire came after the topic of the only publicly-listed crypto exchange, Coinbase, moving out of the United States came up for discussion.
“Crypto is dead in America. I mean now you have Gensler even blaming the banking crisis on crypto—so the United States authorities have firmly pointed their guns at crypto.”
Palihapitiya pointed out that US regulators blame crypto for the recent collapses of the Silicon Valley Bank (SVB), Signature Bank, and Silvergate Bank. These banks were closed earlier this year, and the Federal Deposit Insurance Corporation (FDIC) was put in charge of their dealings.
The tech billionaire added that the US views the crypto sector as a threat to its establishment,” while adding that the asset class is to blame for this as well.
“In fairness to the regulators, [the crypto sector] did push the boundaries more than any other sector of the startup economy,” added Palihapitiya.
The tech investor added that the “bill has come due” for the good crypto companies, who are now paying the price for the bad deeds of former multi-billion dollar crypto companies like FTX under the leadership of Sam Bankman-Fried, also known as SBF in the crypto space.
An important factor in the US crackdown on the blockchain and digital asset space was brought to light by Sacks, who was the founding COO and former product leader of PayPal, along with being the founder and CEO of Yammer. Sacks revealed that one of the reasons the US is moving against cryptocurrencies is because they threaten the dominance of the US dollar.
“I think it’s probably not a coincidence that you’re seeing all these concerns about de-dollarization at the same time they’re cracking down on crypto,” Sack said, referring to the recent actions taken by Russia and China to dethrone the USD’s dominance in global trade.
It was reported by BitcoinWisdom earlier in January that Russia and China are working together on a stablecoin backed by gold. On the other hand, Iran and Russia were collaborating to develop a “token of the Persian Gulf region” to be used as payment in global trade. It seems that Russia and China have started working towards “de-dollarization.”
The United States Securities and Exchange Commission (SEC), under the leadership of Gary Gensler, recently issued a fresh warning to celebrities promoting cryptocurrencies and the firms engaged with digital assets. The regulator has taken action against some of the largest crypto exchanges in the US including KuCoin, Gemini, Binance.US, Coinbase, and others.