At a recent roundtable discussion moderated by Rob Nelson, participants Jon Najarian, the founder of Market Rebellion, and Alex Mascioli, the founder of Trade the Chain, discuss the rising concerns about crypto regulation, its implications for the future of finance, and its potential effects on the U.S. economy.
Is cryptocurrency just an ethereal asset that isn’t actually a part of traditional finance? Is that altering? Nelson started up the conversation. In response, Najarian said that although there is a considerable increase in the popularity of cryptocurrencies worldwide, regulatory initiatives in the United States, notably those driven by SEC chair Gary Gensler, are pushing cryptocurrency-related enterprises outside.
Many [Americans] are wise enough to use VPNs, virtual private networks, and other services. However, the multi-billion dollar companies that were thriving here just a year ago, as well as cryptocurrency, are suddenly all moving abroad. And when they do, he doesn’t believe they’ll return, Najarian said.
While institutional investors might not be concerned, Najarian also noted that they are being compelled by law to offshore. He also mentioned the benefits of cryptocurrencies, such as how blockchain technology can replace the conventional T+3 (Trade Date Plus Three Days) settlement system by enabling fast settlement of stock purchases.
Mascioli agreed with Najarian’s remarks, stating that he left the conventional banking industry in 2017 to start the first institutional hedge fund administrator and prime broker in cryptocurrency because he saw a lot of opportunity for success. He acknowledged that around that time, numerous well-known asset and hedge fund managers began to enter the cryptocurrency industry. But because of the strict regulations, many businesses are now considering migrating abroad.
Mascioli, speaking on behalf of companies like Gemini and Coinbase, said that this is really just a backup plan; if things become too tense in the United States, they’ll simply move the business offshore so that they won’t have to deal with the legislation.
Such a change would have huge effects on the American economy. According to Najarian, the United States stands to lose thousands of well-paying jobs, developments in blockchain technology, and possible innovations in other fields such as health records management, stock trading, and more.
The worst tragedy here is that the invention will leave our nation, Mascioli said.
