- Chamath Palihapitiya, a prominent tech investor and long-time crypto supporter, says regulators have effectively killed crypto in the United States.
- He points to regulatory uncertainty and a string of enforcement actions that, he argues, have stifled innovation and driven companies away.
- Palihapitiya previously predicted in 2021 that Bitcoin had replaced gold and forecasted a potential rise to $200,000.
Tech billionaire Chamath Palihapitiya, known for his bullish stance on bitcoin and his past prediction that Bitcoin could reach $200,000 as a replacement for gold, recently spoke about the current state of the crypto industry in the United States.
In an appearance on the All-In podcast, Palihapitiya said the regulatory environment has all but halted crypto innovation in the country.
Crypto “dead” in the US, says Palihapitiya
During the podcast discussion, Palihapitiya warned bluntly that “crypto is dead in America.” His comments followed widespread industry concern about the direction of U.S. crypto policy after remarks made by SEC Chair Gary Gensler during a congressional hearing.
Palihapitiya placed responsibility squarely on regulators, arguing that their scrutiny and enforcement posture have chilled investment and development. He criticized attempts to link crypto to broader financial issues, such as the recent regional banking stresses, saying those narratives have made regulators “have their guns aimed at crypto.”
Over recent months, U.S. regulators have ramped up enforcement against crypto platforms, with major exchanges and service providers—including Coinbase, Kraken, and Bittrex—facing legal challenges or investigations. That pressure has prompted some firms to consider or begin exiting the U.S. market.
Coinbase CEO Brian Armstrong has warned the company might relocate if regulatory clarity does not improve, while Bittrex announced plans to wind down its U.S. operations amid SEC actions and the resulting uncertainty. In response to enforcement and rule-making disputes, Coinbase also filed a lawsuit against the SEC over a petition it submitted in July 2022.
Palihapitiya’s comments reflect a broader industry sentiment that unclear rules and aggressive enforcement are pushing innovation and capital away from the U.S. crypto ecosystem, potentially shifting activity to more favorable jurisdictions unless policymakers provide clear, predictable frameworks for digital asset businesses and investors.