As regulators in the United States continue their crackdown in the crypto industry, Cameron Winklevoss the co-founder of Gemini Trust Company has warned that the country will be left behind should it continue in this fashion and fail to lay clearer regulations for the industry.
According to the American crypto investor’s Tweet, the next bull run will begin in the East with Asia leading the charge. Cameron further reiterated that crypto is a global asset class that cannot be stopped and the US either embraces it or risks missing out on the “greatest period of growth” since after the rise of the internet.
My working thesis atm is that the next bull run is going to start in the East. It will be a humbling reminder that crypto is a global asset class and that the West, really the US, always only ever had two options: embrace it or be left behind. It can't be stopped. That we know.
— Cameron Winklevoss (@cameron) February 19, 2023
Cameron’s comments come off the back of a wave of actions from regulators like the United States Securities and Exchange Commissions (SEC) against several players in the industry.
We @SECGov charged Genesis & Gemini for the unregistered offer & sale of crypto asset securities through Gemini Earn.
Crypto intermediaries need to comply with our securities laws. This protects investors. It promotes trust in markets. It’s not optional. It’s the law.
— Gary Gensler (@GaryGensler) January 12, 2023
Recall that early this year, the US SEC charged Gemini for marketing unregistered securities to the public through the exchange’s Earn program, thereby bypassing disclosure requirements designed to protect investors. However, Tyler Winklevoss, co-founder of the cryptocurrency exchange criticized the regulatory body and referred to the accusations as “super lame” and “a manufactured parking ticket”.
1/ It’s disappointing that the @SECGov chose to file an action today as @Gemini and other creditors are working hard together to recover funds. This action does nothing to further our efforts and help Earn users get their assets back. Their behavior is totally counterproductive.
— Tyler Winklevoss (@tyler) January 12, 2023
Unlike the US where regulators like the SEC are attempting to rein in the industry and bring services like stablecoins and staking under securities law, countries in Asia have maintained a friendly stance on crypto regulations.
Interestingly, data from Chainalysis shows that Central and Southern Asia and Oceania with $932 billion in cryptocurrency transactions between July 2021 and June 2022 was the third largest crypto market in 2022. Unsurprisingly, seven countries from the region including Vietnam, Philippines, India, Pakistan, Thailand, Nepal, and Indonesia featured in its top 20 countries in the 2022 index.
Regulatory Impasse Threatens Crypto Growth in the US
Several commentators and stakeholders worry that the regulators’ stance will push players out of the market and leave its citizens at the mercy of offshore service providers which is risky.
Aside from Cameron’s comment on the US approach to crypto, Brian Armstrong, the CEO, and co-founder of American cryptocurrency trading platform Coinbase Global Inc., also said the strict actions from US regulators, as well as the SEC, would prevent US consumers from having full access to the basic crypto services.
Meanwhile, Jake Chervinsky, the general policy officer at Blockchain Association has said that the job of providing clear crypto regulations belongs to the US Congress and not the enforcement agencies.
