Amid the ongoing flurry of regulatory actions in the crypto industry, Galaxy Digital CEO Mike Novogratz has unveiled an agenda echoed by several crypto firms; a strategic exit from the US. The ardent advocate for cryptocurrency expressed his concerns over a growing number of companies eyeing foreign territories to conduct their blockchain activities. As reported at the Piler Sandler Global Exchange & FinTech Conference, US soil is becoming less hospitable for crypto businesses.
The pivot from the US does not necessarily imply cutting off all ties. Recognizing the sheer economic might of the country, Novogratz emphasized that crypto’s ultimate destiny requires the active engagement of the US. Instead of hostile negotiations or confrontations, he expressed a dedication to regular dialogues with regulators and politicians.
However, the frosty atmosphere for crypto enterprises in the States cannot be ignored. Heavyweights like Binance and Coinbase have found themselves in the unenvious spotlight of regulatory scrutiny. The SEC’s accusations of violations and lawsuits filed against these exchanges have painted a worrisome picture, synonymous with crypto’s recent shaky standing in the country.
Catalyzing this exodus are allegations on prominent coins such as Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), and Axie Infinity (AXS). These currencies have been listed as unregistered securities, adding another layer of pressure for already beleaguered businesses.
Recognizing the current state of regulatory ambiguity, crypto giants have been proactive in establishing their presence overseas. Coinbase has birthed an operational branch in Bermuda and simultaneously expanded services to Singaporean customers. Their CEO, Brian Armstrong, asserted that US regulators need to promulgate clearer regulations; otherwise, crypto businesses would seek sanctuary in offshore havens.
Lightning the same lamp, the New York-based Gemini is also eyeing a license in the United Arab Emirates, and Ripple, embroiled in a lawsuit with the SEC, has vocalized a similar sentiment of moving its operations from the US.
It should be noted that while regulation is required for investor protection and curbing malicious activities, the consequent flight of cryptocurrencies from the US underlines the pressing need for a finer balance. Alternatively, it risks not only the exodus of these digital currencies but also an expiry of its potential advantages to the nation’s economy. After all, as Novogratz suggests, crypto’s destiny ‘needs’ the US.
Source: Cryptonews
