ShapeShift CEO Erik Voorhees has warned that the crypto industry needs to prepare for increasing government pressure.
This comes as it challenges the state monopoly over money. Despite the unprecedented regulatory pressure that crypto has been facing recently in the United States, Voorhees believes that the fight between the American government and the crypto industry has just begun.
He claims that U.S. authorities still don’t see crypto as an existential threat to the fiat system, and their recent crackdown is just an opportunistic reaction to last year’s blowups of fraudulent crypto companies.
“They see it as sort of this scammy area where they can come in and look like the hero for cleaning up a mess,” Voorhees said in an exclusive interview with Cointelegraph.
However, Voorhees also stated that crypto needs to become mainstream before governments move against it fully. At that point, it will be too late for government actors to crack down on crypto since too many people will be aware of its value and utility.
He has no doubt that crypto will ultimately win the battle for the hearts and minds of people, in part because it is free from the restrictions on capital flow that are present in traditional finance systems.
Voorhees pointed out that “capital goes where friction is least in the crypto world, capital moves freely, it moves effortlessly”. This feature of cryptocurrencies has helped to make them attractive to investors and users.
Cryptocurrencies can be traded and transferred across borders without the need for intermediaries or traditional banking systems. This has led to widespread adoption of cryptocurrencies, especially in countries with unstable or restrictive financial systems.
However, as cryptocurrencies become more popular, governments around the world are starting to take notice. Some are embracing cryptocurrencies and blockchain technology, while others are cracking down on them.
Voorhees believes that the crypto industry needs to prepare for increasing government pressure, as governments try to maintain their control over money.
The recent regulatory pressure faced by crypto in the United States has been unprecedented. The government has been cracking down on crypto-related scams, frauds, and money laundering schemes.
Regulators have been tightening the rules for crypto exchanges, requiring them to comply with anti-money laundering and know-your-customer regulations.
The Internal Revenue Service (IRS) has also been cracking down on crypto tax evaders, with the agency sending out warning letters to thousands of cryptocurrency holders.
Shapeshift Crypto Fight
Despite these challenges, the crypto industry continues to grow and evolve. New blockchain-based solutions are being developed that could transform the way we do business and interact with each other. Voorhees believes that the crypto industry will ultimately win the battle for the hearts and minds of people, as more and more individuals and institutions recognize the value and utility of cryptocurrencies.