Is there a Shift in Attitude towards Cryptocurrency Regulation in the US?
Is it feasible that the hostile attitude towards cryptocurrency regulation in the United States is changing? Recent occurrences, such as backlash against the SEC and its chairman, Gary Gensler, indicate a shift in mood.
Several politicians, including House Majority Whip Tom Emma and Warren Davidson, criticised Gensler during a hearing with the House Financial Services Committee. During the hearing, the Committee's Chair, Patrick McHenry, also took an aggressive position.
The criticism levelled at Gensler's approach to cryptocurrency regulation has been that it is forcing the business out of the United States and towards other countries such as China. A bill to remove Gensler from his job was even proposed.
The United Kingdom's recent measures also indicate a possible shift in sentiment towards bitcoin regulation. According to CEO Brian Armstrong, the reason for Coinbase considering migrating from the US is that the US regulatory environment for crypto is unfavourable, as evidenced by recent SEC lawsuits against Coinbase, Bittrex, and Kraken.
During Fintech Week 2023 in London, Armstrong met with former UK Chancellor George Osborne, as well as current Economic Secretary and City Minister Andrew Griffith. Armstrong lauded the United Kingdom's progress in developing acceptable crypto rules, while Griffith noted that such legislation is expected within the next year. This could help Prime Minister Rishi Sunak's ambition of making the UK a digital assets hub.
The United States risks falling behind both allies and rivals, like as China and the European Union, in the digital assets market. Recent occurrences in the United Kingdom and the European Union imply that the United States is vulnerable to being outcompeted in this field. Armstrong's statements about the regulatory position in the US may have affected the rigorous grilling of Gary Gensler by MPs in the US.
Given recent favourable advances for crypto regulation in other nations and complaints of the SEC's actions, notably under Gary Gensler's leadership, the SEC may soon face defeat. However, undoing the damage that has already been done will require substantial effort. It is unclear whether Gensler will remain as SEC Chairman at the end of this year.
Source:
Coin Bureau Clips, 20 April 2023, "Gary Gensler Gets Absolutely REKT By Congress! What Now?",