• Cathie Wood, founder of ARK Invest, recently stated that the U.S. is ‘losing’ the bitcoin movement due to its regulatory system.
• She referenced last year’s FTX collapse and this year’s banking crisis, saying these events have underlined the dangers of centralization in financial systems.
• Wood believes that Bitcoin offers a solution to this problem by providing users with a decentralized way to store and transact value.
Cathie Wood on U.S.’s Regulatory System for Bitcoin
At Fortune’s Most Powerful Next Gen conference last week, Cathie Wood – founder of investment manager ARK Invest – said the U.S. is ‘losing’ the bitcoin movement owing to its regulatory system. She highlighted how crypto exchange Coinbase (COIN) has received licensing to operate in Bermuda while also looking to expand its presence in Singapore as an example of “the center of gravity [of cryptocurrency] moving away from the U.S” due to its restrictive regulations.
Bitcoin as an Answer To Centralization Problem
Wood also referenced last year’s dramatic collapse of crypto exchange FTX and this year’s banking crisis, which she believes prove bitcoin can provide users with a decentralized way to store and transact value instead of relying on centralized institutions which are prone to failure or manipulation .She concluded her statement by saying it would be nice if the US was leading this movement but “we’re losing it because of our regulatory system”.
Ongoing Disputes With Crypto Companies
The ongoing pressure from regulators in regards to cryptocurrency is largely directed at the Securities and Exchange Commission (SEC). They insist that existing securities laws are sufficient for governing crypto industry without any bespoke framework ,which has resulted in disputes with Coinbase and Ripple among others .
Tesla CEO Elon Musk Advising Investors
Recently Tesla CEO Elon Musk advised investors not “bet the farm on Dogecoin”, which many interpreted as him advising against investing heavily into cryptocurrencies altogether .Musk however clarified his statement soon after ,stating that he was actually referring to being too heavily exposed into any single asset class rather than just cryptos .
In conclusion ,it seems like Cathie Wood recognizes both advantages and disadvantages when it comes to cryptocurrency investments despite being an advocate for them herself .Ultimately only time will tell whether or not US regulatory authorities will eventually recognize their potential or remain adamant about their stance on them in future years .