Time to exit the Matrix.
The United States’ cryptocurrency industry is at a critical stage due to the lack of regulatory clarity and high-profile failures. This current approach may hinder innovation and progress and contradicts the U.S.’s support for groundbreaking technologies in the past. The blockchain industry is agile and new, and without a more favorable regulatory environment, the U.S. risks losing out on the potential of this multi-trillion-dollar industry to more accommodating jurisdictions, such as Switzerland.
While the internet had a significant amount of illegal activity, the U.S. supported its growth. The same approach should apply to the cryptocurrency industry. Recent regulatory actions have merged legitimate businesses with criminal elements, failing to acknowledge that the cryptocurrency industry has attracted some of the brightest minds and has the potential to benefit many sectors. The growing tension between regulators and Coinbase, one of the largest crypto players, is a stark contrast to the supportive environment that the U.S. provided to companies like Apple and Microsoft during their early days.
Unlike previous approaches that created favorable regulatory environments to support innovation, the current U.S. approach towards digital assets falls short. Tax incentives, research funding, and intellectual property protection are critical tools that the U.S. government has used to stimulate innovation across industries like technology, automotive, and renewable energies. Other jurisdictions, including the European Union, Hong Kong, United Arab Emirates, Australia, Japan, and Singapore, have also contributed to advancing the cryptocurrency industry while the U.S. falls behind.
To encourage and support the innovation that the sector promises, the U.S. must provide an open regulatory framework. The blockchain industry is the next enabling technology, improving investor confidence and increasing risk transparency. Therefore, it deserves support and progressive dialogue from the U.S. If the U.S. does not change its current path, it risks losing a significant frontier of technological innovation to more welcoming economies like Switzerland. The U.K.’s financial services sector’s decline compared to France serves as a reminder of what could occur if the U.S. continues on this path. The U.K. missed opportunities to capitalize on the digital asset sector due to unclear regulations, tardiness in adaptation, and excessive restrictions. The lack of regulatory clarity negatively impacted the U.K. economy, and the same could happen in the U.S.
One thought on “Lack of clarity in the US”
Fantastic article and I fully agree with what you write. The US economy will be left behind if they continue with this ridiculous war on Cryptocurrency