Analysts believe that major cryptocurrency firms will exit the U.S in the next few months due to the delayed ETF application approvals by the Securities and Exchange Commission (SEC).
The SEC has received numerous filings from major cryptocurrency firms in the U.S since the start of 2018. However, the regulatory body has delayed any approvals and analysts are convinced that these delays will end up discouraging major crypto firms from operating in the U.S, and thus increasing their chances of exiting in the next few months. The analysts believe that the exit of the major crypto firms from the market may cause a crash.
?We will see many crypto companies leave the US in the next few months without a doubt. US is a huge market. But, see the work South Korea, Japan, Switzerland, Malta, UK, and many other countries are doing with regulation,? stated analyst Joseph Young.
Young believes that the U.S cryptocurrency market which is currently one of the biggest markets will lose its strength due to the SEC?s attitude towards regulation. He also believes that the firms will likely shift to other countries as they continue to become more appealing.
TechCrunch kicks of the movement
Michael Arrington, the founder of TechCrunch revealed that his venture capital firm is one of the first to exit the U.S market. The firm made the decision after receiving two SEC subpoenas for data collection and it plans to move to Asia. Arrington also stated that his firm will halt any investments in the U.S until the U.S regulator comes up with clearly defined token regulations. Arrington also expressed disappointment in the SEC’s decision to crackdown on local firms dealing in the cryptocurrency space.
Despite the growing outrage, some crypto firms such as Coinbase and Gemini which have major operations in the U.S have been working together with the SEC to streamline policies and infrastructure. The two exchanges also happen to be heavily regulated. However, there are still many issues that the SEC is expected to address to clear up the regulatory situation so that the guidelines can steer the market towards the right direction.