The cryptocurrency industry is facing a major challenge from the traditional financial system, which seems to be trying to push out and undermine the growth and innovation of Crypto native companies, especially Exchanges such as Coinbase and Binance.
The truth is, Old Money finally realized that they cannot ignore cryptocurrency any longer and the only alternative now is to try and control it.
For the last 3 months, there has been a concerted effort to push out crypto native firms and have them slowly be replaced by the traditional financial system that Cryptocurrency tries to move away from in the first place.
First, let’s look at the evidence. In the past month, several prominent hedge fund managers have been filing for Bitcoin ETFs (exchange-traded funds) with the U.S. Securities and Exchange Commission (SEC). These include Cathie Wood of Ark Invest, Anthony Scaramucci of SkyBridge Capital, John Paulson of Paulson & Co, and of course Larry Fink of Blackrock. Why are they suddenly so interested in Bitcoin, after years of dismissing it as a speculative bubble or a scam? This alone is a strong indication that the Old Boys’ club has their attention fixed on cryptocurrency.
Furthermore, the SEC has been cracking down on the cryptocurrency industry, especially on the leading crypto exchanges, Binance and Coinbase. The SEC has accused Binance of operating illegally in the U.S., and has threatened to sue Coinbase over its planned lending program. The SEC has also delayed or rejected several Bitcoin ETF applications, citing concerns over market manipulation and investor protection. Is the SEC trying to protect the public interest, or is it acting on behalf of the old financial system that feels threatened by crypto? The actions of Gary and SEC may seem somewhat erratic, but if you’re trying to conceal your intentions, what you want to do is kick up a lot of dust so people don’t see you coming.
Then you have Biden who announced that he will target “crypto loopholes” in his tax plan, which could mean higher taxes and stricter reporting requirements for crypto investors and businesses.
Meanwhile, the European Union and the United Kingdom are advancing their digital currency projects, which could create a centralized alternative to decentralized cryptocurrencies. The U.S. is also exploring the possibility of issuing a central bank digital currency (CBDC), which could have significant implications for the future of money and finance. Funny enough, as plans for ETFs, crypto regulation, and CBDs seem to progress, Binance has been forced to exit several European markets and provides a limited service in some of the other European territories.
It’s just too much of a coincidence that all of the above is happening at once. There is clearly a coordinated effort to push out the crypto native players, such as Coinbase and Binance, and make room for the old financial system that has been in control until now. The old money is afraid to lose its power and influence and is trying to cannibalize the new money that is challenging its dominance.
Remember, just because we are paranoid, that does not mean they are not out there to get you.