ShapeShift CEO believes the American govt vs crypto sector fight started
Erik Voorhees shared his opinion on how the crypto vs US crackdown fight is going and what should be done by the crypto sector to win against strict enforcement actions.
After the downfall of the FTX crypto exchange, the US regulators faced criticism over their failure to stop the bankruptcy of big crypto companies. In response, the US regulators took many enforcement actions against crypto companies. Reportedly the majority of the enforcement actions were not against bad/suspicious crypto companies.
On 15 April 2023, ShapeShift CEO Erik Voorhees appeared in an interview with Cointelegraph news media. In the interview, Erik said that the crypto sector is facing huge regulatory pressure but still he believes that a fight between US regulators & Crypto Industry has started.
According to this crypto entrepreneur, US regulators still don’t see the Crypto sector as an alternative financial system, which may replace the fiat system. He also said that the recent US crypto crackdown is a reaction to the downfall of bad crypto companies.
“They see it as sort of this scammy area where they can come in and look like the hero for cleaning up a mess,” Erik said.
Further, Erik said that the crypto sector needs faster adoption so that more & more people can understand the utility & value of the crypto & blockchain technology and at that point regulators will fail to take action.
In the last, crypto entrepreneur pointed out the main advantage associated with the crypto financial system. He noted that money flows with the help of cryptocurrencies is almost friction-less, unlike the traditional financial system.
US vs Crypto
In the last 3 months, the Crypto sector saw enforcement action on top regulated crypto companies like Binance, Coinbase, Kraken, and Paxos Trust.
All these crypto companies are fully regulated and most importantly Binance is out of the jurisdiction of the US but still faced regulatory heat.
