Crypto is dead in America, says longtime bitcoin bull Chamath Palihapitiya
Summary
Tech investor Chamath Palihapitiya, who said two years ago that bitcoin has replaced gold and predicted the digital currency would climb to $200,000, has a much more cautious view on cryptocurrencies these days. In March, the SEC issued crypto exchange Coinbase a Wells notice — typically one of the final steps before it files charges — warning the company that it identified potential violations of U.S. securities law. Coinbase CEO Brian Armstrong told CNBC that his company is preparing for a yearslong court battle with the commission, and is also considering relocating outside the U.S. if it doesnt get improved regulatory clarity. "Regulation by enforcement is not sufficient nor sustainable," said House Financial Services Committee Chairman Rep. Patrick McHenry, R-N.C. "Youre punishing digital asset firms for allegedly not adhering to the law when they dont know it will apply to them." Bitcoin, the largest cryptocurrency, reached a record of about $69,000 in November 2021, when the Federal Reserves benchmark interest rate was near zero and investors were flooding into risk.