Blockchain Association bids farewell to New York amid looming federal settlement

New York, once the center of the global financial landscape, is now seeing the Blockchain Association pack up and leave town. The leading blockchain consortium has decided to say goodbye in anticipation of a looming showdown with the federal government over crypto regulatory issues. As the battle lines are drawn, the question remains: will this have a far-reaching impact on the future of the blockchain industry in the United States?

Blockchain Association leaves amid crypto regulatory battles

The Blockchain Association, a prominent advocacy group representing key players in the blockchain and cryptocurrency space, made headlines in recent days when it announced its decision to move its headquarters from New York City to an undisclosed location. The move comes as a preventive measure against a potentially turbulent regulatory environment in the US.

Blockchain Association CEO Kristin Smith said: ‘The Blockchain Association is moving resources out of New York State to focus on federal policy – and we continue to hire and build out our full-time staff in Washington. Our mission remains the same: to advance the future of crypto in the United States.”

The move comes on the heels of a landmark decision by New York Governor Kathy Hochul, who wrote a first-of-its-kind law banning specific forms of cryptocurrency mining within the Empire State’s borders. As the pioneer in implementing such a ban, New York has signaled its intention to take a hard line against the emerging industry.

To compound this regulatory pressure, the digital asset landscape has been further rocked by the recent multi-billion dollar implosion of FTX, a leading centralized cryptocurrency exchange. These events have set the stage for an intensified crackdown on federal watchdogs, further clouding the future of the blockchain and cryptocurrency sectors in the United States.

Blockchain seeks friendlier jurisdictions

With the US Securities and Exchange Commission (SEC) intensifying its regulatory enforcement of crypto businesses without providing clear guidance, blockchain companies have little choice but to seek safer havens abroad.

The recent departure of the Blockchain Association from New York has put a spotlight on the growing uncertainty in the US blockchain ecosystem. This murky regulatory landscape, driven in part by the SEC’s aggressive approach to crypto-related businesses, has forced a number of blockchain firms to reconsider their presence in the United States.

On the national stage, the US Securities and Exchange Commission (SEC) has cracked down on leading figures in the industry, targeting centralized cryptocurrency exchanges such as Bittrex, Kraken and Gemini, as well as crypto-lending platform Genesis (owned by CoinDesk’s parent company, Digital Currency Group). The SEC has also taken action against individual players, such as Tron founder Justin Sun, in recent months. These moves have exacerbated an ongoing decline in the digital asset market.

The regulatory onslaught has sparked outrage among cryptocurrency supporters, who are now calling for the SEC to clarify existing rules and allow crypto firms to register with the federal body.