A South African professor spoke about the US anti-crypto agenda and argued that they might not succeed as crypto is global. Steven Boykey Sidley, a professor at JBS University, Johannesburg, criticized the United States’ way of handling crypto and how this caused many crypto companies to flee the Land of the Free.
The United States Anti-Crypto Agenda
Sidley has accused US regulators and lawmakers of putting together a coordinated attack on the crypto industry. However, the authorities have had the country’s best interest in mind, saving the US from AML and other crypto-related activities. But there are no moral or legal reasons that could justify this behavior.
The US is trying to sabotage its crypto presence worldwide during the ongoing banking crisis in the country. While speaking to the media, Sidley pointed out that the reasons for the US Federal Reserve were vague in refusing a license to Custodia Bank. Founder Caitlin Long and the bank were committed to raising the depositors’ confidence, and the deposits in their exchange were backed 1:1.
The Coordinated Attack on Crypto By US Authorities
Sidley, the co-author of the book Beyond Bitcoin: Decentralized Finance and the End of Banks, refers to recent attacks on the crypto industry by the US authorities, like the issuance of Wells Notice to Coinbase, Ripple vs. SEC case, Senator Elizabeth Warren’s Anti-Crypto Army, etc., all seem coordinated.
The infamous SEC vs. Ripple case has been going on since December 2020, where the financial watchdog of the country, the Securities and Exchange Commission, accused Ripple of selling unregistered securities in the form of their token XRP. SEC is trying to prove that XRP is a security and must be registered with them and act accordingly in the market, but failed to prove their point in New York District Court.
Both parties have submitted their testimonies and documents and are awaiting further results. If SEC wins and XRP is rebranded as a security, then every other token will also be seen as a security; its providers and issuers must line up in the SEC office to register. This way, they would inadvertently bring them under their jurisdiction and have full control over them.
SEC also issued Wells Notice to crypto exchange– Coinbase; although this notice does not mean that the regulator would take action against the exchange, they just want to talk and clear the matter. But this notice has created an awkward situation in the industry. Prices of cryptocurrencies are stagnant as investors are waiting for clarification.
Massachusetts Senator Elizabeth Warren is known to be anti-crypto, and for her re-election campaign, she is to start an “Anti-Crypto Army.” She is believed to have some support from conservative Republicans. Warren has made her points against crypto in favor of national security, money laundering, terror funding, & human trafficking.
The United States has been a financial world power for decades, and its reaction toward crypto and attempts at regulating are sending mixed signals to crypto companies worldwide. They are unsure if they want to operate in the nation, as many have left and moved to favorable countries. It is believed that crypto is global and is the future of finance, and every country will have to adapt.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
