Fintech innovation has been stifled in the United States, and this has attracted the attention of many concerned and renowned experts.
According to Dan Tapiero, the co-founder of 10T Holdings, fintech regulations in the U.S. are a “big problem.” He claims that this is because the current fintech regulations have not put the future into consideration. His tweet reads:
US regulators stifle financial/monetary innovation with no vision of the future.
China "commits $1.4 trillion to tech with blockchain at top of list."
If @michael_saylor can do $425m, China can do $100 bil.
US losing race to shape digital asset ecosystem. pic.twitter.com/1XLtIYv4w4
— Dan Tapiero (@DTAPCAP) October 11, 2020
Dan Tapiero quoted the words of Chris Larsen, the chairman of Ripple Labs, who compared fintech regulations between the United States and other countries. Since the U.S. is currently losing the race to design “the next generation of the global financial system,” operators in the U.S. may be tempted to relocate to another country with better fintech regulations.
Ripple Labs threatens to leave the U.S due to regulatory issues
The chairman of Ripple Labs, Chris Larsen, voiced this relocation threat if no improvement is achieved in the aspect of regulations.
While speaking to a correspondent at the Blockchain Summit held last Tuesday, the chairman called on the United States to accept the fact that they are in a tech Cold War with China, especially as the global control of financial activities is at stake. With the current U.S. fintech regulations in place, however, he sees that China is already winning.
Larsen says, “China is just itching to be the one that designs the next system. They’ve committed $1.4 trillion to a variety of technologies and blockchain is right at the top of their list.”
Apart from the fact that China is actually investing in technological advancements, Larsen also pointed out that U.S. fintech regulation is actually hindering financial innovation.
He adds, “I just have to say it, in the U.S., all things blockchain, digital currency, they start and end with the SEC. Instead of pivoting to encourage U.S innovation to keep up, they’ve done the opposite.”
What does the future possibly hold?
He also spoke about the attitude of the U.S government towards cryptocurrency. The chairman pointed out that the Trump administration is not friendly towards cryptocurrency, although the administration is also very tough on China.
According to him, a Joe Biden administration may have better results in moving some of the crypto mining activity out of China by placing carbon taxes on their operations. A full 65% of all crypto mining activity is currently located in China.
Previously, Russian President Vladimir Putin penned a new law that bans the use of cryptocurrencies as a means of payment for goods and services in Russia. The new law also gave legal status to cryptocurrencies. However, the new law also restrains their use for payment in Russia.
Additionally, the U.S. Internal Revenue Service (IRS) has been looking to break the anonymity of the privacy-focused Monero (XMR). The IRS has awarded contracts to two companies to find a way to unmask Monero’s activities.