Benzinga - 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. (NASDAQ: COIN).
Palihapitiya noted these companies had "pushed the boundaries" more than other startup sectors and are now "paying the price" for it.
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Palihapitiya, who previously predicted that Bitcoin (CRYPTO: BTC) 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.
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