It’s becoming increasingly more apparent that the tide could turn for crypto based startups who look to ‘green pastures’ beyond United States borders. The CEO of Ripple, Brad Garlinghouse firmly expressed his belief at a panel at Token 2049 in Singapore, that the United States is indeed the worst country for crypto start-ups. According to Garlinghouse, the hesitance toward welcoming digital asset innovation in the U.S pales in comparison to friendlier climes such as the United Kingdom, Singapore, the United Arab Emirates, and Switzerland. These nations have seemingly nurtured firmer, more sensible laws for the flourishing of blockchain start-ups and offer a fertile ground for the said digital asset ventures.
It might seem that the aggressive lawsuit strategy employed by theSEC and the CFTC, has unfortunately given rise to a simmering kind of war in the cryptocurrency market. Watching the powerful governmental bodies take on the likes of Coinbase and Binance, one can’t help but note the stigma being cast on the implementation of crypto regulations in the US. However, it is interesting to observe that even while the SEC and the CFTC have suffered recent notable legal losses, the outpouring of these lawsuits continues unabated.
On one hand, it can be argued that regulation is crucial for any industry to maintain ethical practices and avert consumer exploitation. Yet on the other, there are those who feel that the strong-headed stance of these regulators impedes the growth of the blockchain industry. While not every country is as welcoming towards digital currencies, countries vary in their openness to the technology’s possibilities.
As an example, OKX’s CEO Hong Fang agrees that a spot Bitcoin ETF would be a welcome addition for the industry. However, she notes concerns over untested custody solutions and the volatile nature of BTC. This shared apprehension demonstrates that apprehension isn’t unfounded, indicating the need for cautious innovation.
Consequently, the diverging views on crypto regulations compel crypto-based organisations to continually seek out environments that encourage innovation, without infringing upon consumer protection, while ensuring regulatory clarity. This may eventually lead to a mass exodus of blockchain startups from U.S soils to friendlier jurisdictions. Given the ever increasing number of crypto enthusiasts, it’s clearer than ever that the crypto ecosystem must learn to strive in unfavourable conditions, continually innovating and adapting, while nonetheless respecting such significant legalities and regulations. Uncertainty remains, but what is certain is this: the future of blockchain relies heavily on this balancing act.
Source: Cryptonews
