ARK Invest’s Cathie Wood Says SEC Crypto Crackdown Great for Decentralization but Not So Good for US
The chief govt of ARK Make investments says that the U.S. Securities and Change Fee’s (SEC) newest enforcement actions may have a unfavorable affect on the competitiveness of the nation’s crypto business.
Cathie Wooden says that regulatory variations between nations may push overseas alternate platforms forward of US-based ones.
In keeping with Wooden, the SEC’s crackdown on crypto companies may stifle US competitiveness, giving outdoors alternate platforms a leg up.
“So, exercise strikes to offshore exchanges or to self custody, self sovereignty, and self management? Decentralization wins. Nice! Given regulatory arbitrage, nevertheless, US exchanges lose to overseas exchanges, not so good for US competitiveness within the crypto revolutions, for my part.”
Wooden is referring to the SEC’s choice to assault US-based crypto platform Kraken, which compelled the agency to shutter its staking program and pay a $30 million wonderful. Professional-crypto SEC Commissioner Hester Peirce mentioned that makes an attempt to control the business by means of enforcement is each unfair and inefficient.
Fashionable economist and crypto dealer Alex Kruger agrees with Wooden on the difficulty of decentralization, saying that banning US exchanges from with the ability to provide staking companies may trigger Ethereum (ETH) to grow to be a extra decentralized asset.
“See this spin kicking in in just a few weeks… just like the way it occurred when China banned Bitcoin (the final time!) and narrative spinners turned it into, ‘That is good for Bitcoin as now mining will likely be concentrated within the US as an alternative of in China.’
Optimistic narrative spin for later: banning US exchanges/custodians from providing staking companies pushes staking offchain or overseas [means] ETH is now not centralized and below the grasp of US regulators. Decentralized ETH is healthier ETH.”
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