‘Crypto Is Dead In America’ — Early Bitcoin Investor Issues Stark Coinbase Warning Amid Price Chaos
BitcoinBTC and crypto have come under pressure due to the anti-crypto stance of US regulators and lawmakers (one of whom is building an “anti-crypto army”).
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The Bitcoin price, despite seeing a rally in 2023 that some believe may be just under way, is still down about 60% from its late 2021 highs, while CoinbaseCOIN, the major US-listed crypto exchange, has have been hit hard by violent price fluctuations in bitcoin and crypto – even if a new cryptocurrency suddenly rises.
Now venture capitalist Chamath Palihapitiya, an early bitcoin investor who claims to have first bought bitcoin in 2010, has declared that “crypto is dead in America” – warning regulators are coming for crypto companies like Coinbase.
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“Crypto is dead in America,” Palihapitiya said on the All-In Podcast, along with fellow investors Jason Calacanis, David Sacks and David Friedberg, pointing to Securities and Exchange Commission (SEC) Chairman Gary Gensler blaming the recent banking crisis on bitcoin and crypto. . “So the US government has definitely turned its guns on crypto.”
Last week, Gensler linked the collapse of Silvergate and Signature Bank to their crypto activities during his testimony before a House Finance Committee.
US regulators and lawmakers stepped up their scrutiny of the crypto industry and market after the implosion of Bahamas-based crypto exchange FTX last November sent shockwaves through Washington DC, where FTX founder Sam Bankman-Fried had become a major political donor.
“[Crypto companies are] probably the ones that were the most threatening to the establishment, and they were the ones that, in fairness to the regulators, pushed the boundaries more than any other sector of the startup economy. So now they are paying the price for it. The bill has fallen due for them,” Palihapitiya said.
Last week, Coinbase CEO Brian Armstrong said the New York-listed bitcoin and crypto exchange would consider moving away from the US if the regulatory environment for the industry does not become clearer.
“Everything is on the table, including relocation or whatever is necessary,” Armstrong said during a London conference, it was reported by Coindesk.
“I think the US has the potential to be an important market for crypto, but right now we don’t see the regulatory clarity we need,” he said. “I think if we don’t see regulatory clarity emerge in the US for a number of years, we may have to consider investing more elsewhere in the world.”
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