Since the start of the bear market in mid-2022, governments around the world have shown their skepticism about the emergence of cryptocurrencies. Among these countries, United States serve as scarecrows since they constantly strengthen their legislative arsenal to curb the evolution of the crypto industry.
In reality, this distrust stems from several distinct events that have taken place since the beginning of spring 2022. After the collapse of the Terra Luna ecosystem, the United States wanted oversee the development of stablecoins while the consecutive bankruptcies of investment funds have reinforced their fear. Finally, the fall of the American exchange FTX finished convincing them to legislate aggressively towards this new industry.
On the other hand, although there is a certain form of logic in seeing the United States apply strong regulation to the sector, it is difficult to imagine a reconciliation between the actors of the blockchain and US lawmakers in the coming months.
Indeed, many influential people in the field strongly criticize the lack of reflection and anticipation of legislators when they talk about the crypto currencies. In focus, the bill “The Digital Asset Anti-Money Laundering Act” is at the center of discussions.
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The United States attacks the cryptocurrency industry
Recently, Democratic Senator Elizabeth Warren tabled a bill called “The Digital Asset Anti-Money Laundering Act”. The latter is portrayed by industry players as an extreme threat with regard to companies specializing in crypto currencies.
Concretely, if this law is adopted, American crypto companies will have to register as a bank if they develop software associated with the blockchain or if they participate in the validation of transactions on a blockchain.
This law is implemented to fight against whitening silver. However, numerous reports show that the use of blockchain to launder money is not necessarily popular. Moreover, such a law would certainly not have only a minor impact on the actual slowing down of this practice.
Therefore, according to John Rizzo, “an evaluation of this law shows that this legislation is both unnecessary and designed to favor a policy of outright prohibition of crypto currencies“.
Mining not spared by the Biden administration
Just as the use of cryptocurrencies poses a threat to US lawmakers, mining activity Bitcoin also appears to be a threat to the US government.
Indeed, the latter recently proposed a new taxation specifically applied to the mining of Bitcoin. More specifically, this tax would apply to encourage the use of renewable energies.
However, as Fred Thiel, CEO of Marathon Digital, reminds us, such a tax will especially encourage “miners of Bitcoin To leave the United States“. Moreover, he specifies “that they are already trying to do so”.
Crypto companies are leaving the United States
In response to the creation of a particularly aggressive regulatory framework, many cryptocurrency and blockchain companies are currently exploring their options to permanently leave American soil.
According to cryptocurrency attorney Jason Gottlieb, “this exodus is happening especially because many of these founders are in their twenties, have no children and can work from anywhere”.
Same story on the side of Circle, the issuing company of the stablecoin USDC, which is currently settling in Paris. According to Circle’s head of strategy, France is also “increasingly considered as a leader in the field of crypto currencies“.
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