The United States' crackdown on cryptocurrencies and crypto firms will only serve to stifle crypto-related innovation and "weaken" the country, industry pundits say in the wake of Coinbase's recent Wells notice from the Securities and Exchange Commission.
On March 22, the crypto exchange became the latest crypto firm to receive a "legal threat" — a Wells notice — just a month after stablecoin-issuer Paxos received its own in February. Some suggest there could be more to come.
Mati Greenspan, the chief of crypto research firm Quantum Economics, said he believes U.S. regulators have been unfriendly to crypto "since the beginning."
The recent collapses of crypto and startup-friendly banks, including Silvergate, Silicon Valley Bank and Signature Bank, have been viewed by some as being part of a scheme by regulators to un-bank the crypto sector, dubbed "Operation Choke Point 2.0."
Meanwhile, a March 20 economic report from the White House turned into a scathing review of the merits of crypto assets, with the paper spending almost an entire chapter debunking crypto's "touted" benefits.