In an investor call, on 16 July 2020, Grayscale CEO Barry Silbert said that it is highly unlikely that the US government will ban Bitcoin.
Barry Silbert is the CEO of the cryptocurrency firm, Grayscale Investments, and Digital Currency group. He commented on the call that he is cautiously optimistic about the chances of improvement in the US regulations or at least not worsening for the cryptocurrency.
He said that it will be difficult to ban Bitcoin directly because it is a result of the decentralized blockchain network. It could be regulated by restricting its use or imposing penalties on parties using it, but the enforcement of these laws would be challenging.
The Grayscale CEO also mentioned that the relationship with the regulators has been much better due to the effort made by groups like Blockchain Association. This group is known for speaking out in favor of many blockchains and crypto companies in front of the SEC and Coin Center, a non-profit crypto advocacy group.
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Silbert’s comments have come in after reports last month that the US President Donald Trump had told Steve Mnuchin to “go after bitcoin (for fraud).”
The financial world is not in favor of Bitcoin and would prefer its ban
Many Bitcoin critics have spoken in favor of banning Bitcoin forever in the US and that this ban will have a huge effect that would impact altcoins and other countries as well.
Various personalities from the financial world have been vocal about their lack of trust in Bitcoin and have preferred to see it banned. JP Morgan CEO, Jamie Dimon, and Economist Nouriel Roubini have both criticized Bitcoin extensively.
The US government to take a more accepting stance as more countries adopt digital currency
Since the Coinbases’s readiness for an Initial Public Offering (IPO) and most government moving towards digital currencies, it seems that the US will take a more accepting stance towards the cryptocurrency.
Also, the US government has not yet considered the lack of firm crypto regulations hurting blockchain development in the USA, whereas other nations like Singapore have already attracted many crypto and blockchain projects and a lot of investors as well.
Interest in cryptocurrencies, blockchain technology, and digital currency is steadily growing due to the impact of COVID-19 pandemic and resultant socio-economic turmoil, with American regulators paying more attention to Bitcoin.