Recent comments by representatives of the United States government, including President Donald Trump, have cast significant doubt over the future of the crypto industry in America.
The United States is an economic powerhouse and their participation in any industry is crucial to the development of any particular industry. The same applies to the crypto industry and this is why stakeholders in the industry have been trying to establish a business in the United States and comply with the country’s regulatory standards. Recent trends have shown that the crypto industry in the United States is shrinking as many companies are ceasing operations in the United States.
America’s presidency, congress and treasury have all come out over the course of the past few weeks to openly condemn and speak against cryptocurrencies. Regulatory bodies in the country have also been presenting cryptocurrencies in a bad light and they have made it difficult for cryptocurrencies to achieve compliance with set regulations. Trump, through his tweets, referred to digital assets as a medium for criminal enterprise and said that they are backed by nothing but thin air.
Speaking on this matter, Larry Cermark said that the trends being seen in the United States are ominous and are a serious issue. Cermark, head of crypto research at The Block, indicated, through his tweets, that the withdrawal of companies from the United States and the investigations that have been opened up against crypto companies by regulators are terrible signs for the future of the industry.
Challenges faced by the crypto industry in America
A few crypto exchanges have been blocked from trading in the United States. Bittrex and Poloniex have had to geo-block all traders from the United States. Binance has also had to stop American traders from accessing their platform. Although Binance has withdrawn its services from American clients, they are under investigation on suspicion that they did not actually stop serving their American clients.
While there are exchanges offering crypto trading to American traders, they are under investigation by various agencies and they are facing regulatory challenges. BitMEX and Bitfinex are examples of such exchanges that are still operating but are struggling in the war waged by American authorities.
Demands from US authorities
The announcement of Facebook’s Libra has influenced a new wave of attacks on the crypto industry. The United States government wants to see heavy regulations being imposed on the crypto industry. The need to control cryptocurrencies has come from the threat posed by digital assets on the dominance of the US dollar globally. In their bid to protect the dominance of its currency, the United States is destroying the crypto industry within its borders.
Although they may be able to stop the crypto industry from growing within the United States, there is no way of stopping the industry’s growth in other parts of the world. Major crypto companies will take their business to other countries where regulations are kinder and the growth of the industry is encouraged. Online crypto trading is here to stay and it is only a matter of time until this fact has to be accepted without reservation.