According to billionaire and venture capitalist Chamath Palihapitiya, the cryptocurrency industry in the United States is on the brink of collapse due to what he believes is the stifling regulations imposed by the government.
Palihapitiya claims that the US authorities view cryptocurrencies as a threat to their dominance, and have therefore aimed their weapons squarely at the industry.
SEC Chairman Gary Gensler’s recent comments blaming crypto assets for the banking crisis only add to Palihapitiya’s concerns.
The regulations have hit the good players in the industry the hardest, with the collapse of the FTX exchange and the bankruptcy of cryptocurrency hedge funds tarnishing the reputation of the industry.
Co-host David Sacks believes that US authorities are trying to stifle cryptocurrencies because they fear that digital assets could undermine the dominance of the US dollar.
Palihapitiya argues that these regulations will only force American cryptocurrency companies to move abroad, depriving the country of opportunities for innovation.
He has been a longtime supporter of bitcoin and previously stated that he invested in it in 2013 and continues to add to his coin collection.
However, Palihapitiya previously acknowledged that regulators were cracking down on the industry due to frequent cases of illegal token distribution and sales.