Ark Invest CEO says US scrutiny is good for Crypto decentralisation

Cathie Wood shared her opinion on the ongoing crypto services crackdown by the US Securities regulatory body. 

Since last week, the US authorities have announced many actions against the Crypto companies. In particular, we can see the United States Securities and Exchange Commission (SEC) vs Kraken case in which Kraken terminated its crypto staking services for the US customers & also paid a $30 million fine. And in the latest, the SEC sent a Wells notice for stablecoin issuer company Paxos to confirm that the SEC investigation on behalf of Howey test found BUSD stablecoin security.

Recently Cathie Wood took to Twitter to claim that US authorities’ increasing regulatory pressure on the Crypto companies will result in a better outcome for the decentralised nature of the crypto sector. 

Wood noted that in these situations, the majority of the participants in the crypto sector will try to adopt an offshore path and crypto Investors will move toward self-custodial crypto wallets instead to remain dependent on the Crypto exchanges. 

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So, activity moves to offshore exchanges or to self custody, self sovereignty, and self control? Decentralization wins. Great! Given regulatory arbitrage, however, US exchanges lose to foreign exchanges, not so good for US competitiveness in the crypto revolutions, in my view. https://t.co/1Lv4IqVsmn

— Cathie Wood (@CathieDWood) February 11, 2023

Many Crypto Twitter users responded to this opinion of Cathie Wood and noted that she is right. 

A crypto Twitter user noted that people are talking about enforcement action by the SEC agency over Kraken’ staking services but why is no one asking how Kraken exchange was providing  return on BTC investment, which is not a PoS consensus based crypto asset. 

This was my initial reaction but it’s wrong. Kraken was offering yield on Bitcoin, which is not a proof of stake coin. They had no disclosure about where that yield comes from. Coinbase doesn’t do this, and confirmed that dirty Gary isn’t punishing them

— Car for Coin (@Carforcoin) February 11, 2023

Recently Coinbase exchange also shared its opinion on the Kraken Settlement case with the SEC agency and noted that offshore is not an answer to these incidents and if Coinbase will face any kind of similar enforcement action then it will fight in the court if needed.

Read also: Blockchain Association director says IRS should focus on centralised Crypto platforms

Ark Invest CEO says US scrutiny is good for Crypto decentralisation

 

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