The US war on crypto is intensifying, with the latest salvo being fired at Binance. Meanwhile, industry executives are raising concerns that Uncle Sam is stifling crypto and innovation.
On March 27, Katie Hahn, founder of Hahn Ventures and Coinbase board member, wrote an article about how US financial regulators are deliberately strangling the crypto industry.
She said financial regulators had seized the opportunity in 2022 to crack down after the high-profile meltdown.
Furthermore, he has castigated Congress for “trying to free the entire industry from banking services”.
Crypto Policy A Job For Congress
The former federal prosecutor said that crypto companies are getting caught with bad actors. It is part of a “coordinated regulatory drive to accelerate progress in the sector”, he said.
Other countries are creating regulatory frameworks and laws for the nascent industry. However, “unelected officials” are making major policy decisions about whether or not there should be a crypto industry in the US, he said.
“These efforts are misguided, reckless and potentially unconstitutional. Most importantly, they have put America on a dangerous path of shutting down the banking system for people it dislikes by a particular administration.”
Hahn echoed statements from fellow industry executives. “Major US policy decisions should be made by Congress and state legislatures, not unelected officials,” she said.
Furthermore, the regulatory vacuum in the United States has led to the SEC and CFTC taking things into their own hands.
There has been a demand for honesty and transparency. However, the expedient political approach “threatens to stifle innovation and punish legitimate actors.” The investment firm executive concluded:
“Government censorship has no place in finance or any industry as a backdoor alternative to the legislative process.”
Banking Bunkum Redux
Charles Edwards, founder of the Capriole Fund, echoed the sentiment. He commented That the US banking system is under stress, and financial regulators are cracking down on cryptocurrencies in response.
“It is ironic that over the past 2 weeks, US regulators have pulled everything they can into crypto as a result of bitcoin being a viable alternative. Illegal shutdown of Signature Bank, unfair Coinbase Wells notice, Binance lawsuit, the list goes on.
The latest lawsuit targeting Binance shook the markets today. Additionally, a 2.6% drop in total market capitalization resulted in a drop of $1.78 trillion at the time of writing. However, it looks like the digital dust has settled as the markets remained at the current levels for the last 12 hours.
BeInCrypto has reached out to the company or individual involved in the story for an official statement regarding the recent developments, but has not yet received a response.