'Crypto Is Dead In America': Is Tech Guru Chamath Palihapitiya Overreacting, Or Is The End Near?

Zinger Key Points
  • Tough times for cryptos in the U.S. says tech guru who originally predicted golden times for Bitcoin.
  • SEC's stance on cryptos is blamed for stunted growth of digital assets.

Cryptocurrencies are facing tough times in the U.S. due to regulators' aggressive approach to the industry, according to tech investor Chamath Palihapitiya in an interview for the All-In podcast.

"Crypto is dead in America," stated the tech guru, who cited as a key factor in crypto's decline Securities and Exchange Commission Chairman Gary Gensler's strict stance on cryptocurrency trading platforms following the banking crisis.

The SEC has been actively enforcing regulations and has charged several crypto firms for allegedly selling unregistered securities, including Bittrex and Coinbase Global Inc. COIN.

Palihapitiya noted these companies had "pushed the boundaries" more than other startup sectors and are now "paying the price" for it.

Also Read: BRICS Currency Rising? 19 Countries Desperate To Join The Powerhouse Group

Palihapitiya, who previously predicted that Bitcoin BTC/USD would climb to $200,000 and had called it the new gold, now has a more cautious view on cryptocurrencies.

He believes the lack of trust in leaders contributed to the growth of Bitcoin, and despite his earlier predictions, he did not specify when he expects the price to rise again.

While House Republicans criticized the SEC's regulatory approach, Gensler defended the agency's actions, stating exchanges needed to be in compliance with the established regulatory framework.

The largest cryptocurrency, Bitcoin, hit a record high of about $69,000 in November 2021, but the market quickly changed when the Federal Reserve began raising interest rates to combat inflation.

Read Next: Tiger Global's Crypto Woes Continue: 170 Startups Worth Less Than Original Investment

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsFederal ReserveSECMarketsBittrexChamath Palihapitiyacrypto tradingGary GenslerHouse RepublicansInflationUnregistered securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!