China has made its move, the ball is now in America’s court
In the light of China declaring all crypto transactions illegal, both memes and FUD flew around the market. Meanwhile, experts and analysts shared their takes on the development.
On 25 September, Real Vision journalist Ash Bennington spoke to investment strategist and Real Vision CEO Raoul Pal to understand the significance of China’s latest move, and read into the USA’s own regulatory struggle.
The Real Vision Daily Briefing ?#China ? goodbye to #Crypto… @RaoulGMI & @AshBennington dive into the world of #crypto regulation and the implications of China's latest ban on the future of the #digitalasset space.
LIVE ? https://t.co/iRsXbJwBeA
— Real Vision (@RealVision) September 24, 2021
Pal first remarked that he didn’t think China’s crackdown was “big news.” He said,
“What they’re trying to do is clean up the leakages, I think, ahead of the launch of the digital yuan. And so it’s more about that and more about illegal capital flight, and just cleaning up their own financial system than it is – I mean, as far as we can see – it’s not an outright ban for owning crypto. Really, what they’re trying to do is stop people moving money outside of the Chinese system.”
Pal also noted the strain on China’s electricity resources.
Coming to the USA’s own regulatory scene and Gensler’s promise to continue using the SEC’s authority, Pal had a prediction about how the tussle might end. Slamming the SEC and America’s wealth gap, he said,
“If you honestly think it’s a good idea to not give the public access to the best investment class in terms of performance the world has ever seen, then you are really making some bad decisions.”
Observing Gensler’s push for investor protection, Pal noted that KYC, AML, and tax compliance would happen “without question” but that regulating users would send crypto innovation offshore.
At $2 trillion — 5,000 or 6,000 projects — we need to be thinking about investor and consumer protection, tax compliance, anti-money laundering, and financial stability. pic.twitter.com/NysH6QiKFr
— Gary Gensler (@GaryGensler) September 21, 2021
Pal concluded that after regulatory struggles and court cases, the final result would be a large compromise – like in the case of the Internet.
Crypto experts, analysts, and politicians have all shared their thoughts on what China’s ban could mean for America’s crypto sector. Senator Pat Toomey saw an opportunity for the USA to profit from China’s crackdown.
China’s authoritarian crackdown on crypto, including #Bitcoin, is a big opportunity for the U.S. It’s also a reminder of our huge structural advantage over China.
— Senator Pat Toomey (@SenToomey) September 24, 2021
Meanwhile, investment expert Anthony Pompliano suggested that Bitcoin represented everything China stood against.
Bitcoin is anti-China technology.
— Pomp ? (@APompliano) September 24, 2021
For his part, Cardano founder Charles Hoskinson noted China’s repeated attempts to clamp down on the crypto sector.
Why does it seem like China is slowly becoming a hobbit? "haven't you already banned bitcoin?", "yes! but what about second banning? And mid-afternoon banning?"
— Charles Hoskinson (@IOHK_Charles) September 24, 2021
Finally, Pal looked towards the future and shared his prediction about crypto penetration. He said,
“This is the fastest growing adoption of any technology in all human history, as 150 million people worldwide [are] using crypto right now. By my estimates, we get to a billion people by 2024. “