US crackdown on cryptocurrencies and blockchain companies will only stifle innovation and ultimately weaken the country’s economy, experts say following the Wells notice recently received by Coinbase (NASDAQ:) from the Securities and Exchange Commission.
On March 22, the well-known cryptocurrency exchange received a “legal threat” — a Wells notice — just a month after stablecoin issuer Paxos received a similar notice. Some believe that more will come in the future.
Mati Greenspan, Chief of Crypto Research at Quantum Economics, believes US regulators have been hostile towards cryptocurrencies “from the beginning”. Some even argue that the recent collapses of crypto-friendly banks and startups – such as Silvergate, Silicon Valley Bank and Signature Bank – are part of a plan by regulators to de-bureaucratize the cryptocurrency sector: the so-called “Operation Choke Point 2.0.”
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