The co-founder of Union Square Ventures, Fred Wilson, recently said that the SEC’s decision to remove crypto coins from the crypto exchanges in the United States was very damaging. Wilson believed that the hostile policies from the regulatory body will soon drive innovation away from the Silicon Valley, the “global epicenter of tech.”
Wilson tweeted, “In 5-10 years when we look back and consider why the next big tech sector centered itself in Asia and not in the US, it will be the SEC’s unwillingness to create new rules to regulate new assets that will be the cause”
Wilson stated referring to coinbase that the “most trusted/compliant/secure/safe” cryptocurrency exchanges were earlier based in the United States.
Preston Byrne, an attorney at the Byrne & Storm, replied to Wilson’s tweet saying that the “alleged misconduct” in the Asian countries will be quite destructive for the whole crypto market. Byrne stressed on the fact that the “bad actors” need to be removed from the market since they are a major threat to the Bitcoin adoption.
Byrne said that there is an urgent need to watch the trading markets and regions. He added:
“95% of trading volume is faked. The Bitfinex/Tether saga is insane and only just getting started. If crypto is going to be adopted, we need to have more trust in our trading venues that requires close supervision of trading venues and markets.”
The founder of the BlockTower Capital, Ari David Paul, reacted to the post saying that,
“Hopefully we’re not headed toward a world where voluntary commerce can be stamped out globally. So for a global asset, this will always be an issue. Fortunately, you don’t need to care. $1b in CME future volume is real and traceable. Manipulation is temporary by nature.”
Byrne responded to Paul’s tweet saying that almost $3 billion of Tether [USDT] has kept Finex and Binance “afloat” so far and Tether has also contributed significantly to their volumes. USDT is currently being heavily surveyed by the State of New York. Byrne further added that the two platforms (Finex and Binance) were a “hair’s breadth away” from an investigation for fraud.
What are your thoughts about SEC’s strict regulations scaring innovations away from the U.S.? Let us know in the comments section.