Cathie Wood Urges Regulatory Reform as US Loses Ground in Bitcoin Innovation
Cathie Wood, the founder of Ark Invest, recently highlighted that the United States is lagging in the Bitcoin movement due to its regulatory system. Speaking at Fortune’s Most Powerful Next Gen conference, Wood expressed concern over the shifting center of gravity in cryptocurrency away from the US. Notably, she pointed out that Coinbase has obtained a license to operate in Bermuda and is expanding its presence in Singapore. Wood stated, “It would be nice if the US were leading this movement, but we’re losing it because of our regulatory system.”
The Securities and Exchange Commission (SEC) has been tightening its grip on cryptocurrency companies, including Coinbase, issuing a Wells Notice to investigate their activities. Despite the regulatory challenges, Ark Invest continues to invest in Coinbase, purchasing $8.6 million worth of Coinbase stocks last month, even after the exchange sued the SEC.
Wood also drew attention to the collapse of FTX last year, emphasizing how it validated the concept of Bitcoin. She likened it to the banking crisis, highlighting the dangers of centralization in the financial system. Wood emphasized that Bitcoin gained traction due to its decentralized, transparent, and auditable monetary system, which emerged as a response to the loss of trust in traditional financial services during the 2008/2009 crisis. The collapse of FTX, a centralized and opaque platform, further demonstrated the advantages of decentralized systems.
Clever Robot News Desk 26th May 2023
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