Crypto industry leaders and influencers took to Twitter to denounce the White House’s annual economic report saying crypto has no value. The White House’s annual economic report to Congress considers crypto assets as speculative investment vehicles and harmful for investors, stablecoins risk bank runs. The report also doubts the benefits of crypto including store of value, effective means of payment, and economic benefits of DLT technology.
Mike Novogratz, CEO of Galaxy Digital, in a tweet on March 22 said the White House is wrong about crypto and Bitcoin rise amid the banking crisis and economic troubles showing the benefits. He even argues that if the government is right, they should refund all taxes on crypto trading he paid in the last 10 years.
“Maybe they should refund me all the taxes I have paid over the past 10 years on my crypto trading. They are wrong! $BTC is report card on the stewardship of the economy. And its rise is telling us something.”
Jake Chervinsky, chief policy officer at the Blockchain Association, claims that policymakers are playing venture capitalist by simply guessing which technologies are valuable or not valuable. He asserts that technological neutrality is a core principle of good policy and the government should away from the technology they don’t understand.
Too many policymakers are playing venture capitalist, guessing which technologies will be valuable and which won’t.
Tech neutrality is a core principle of good policy for a reason. Picking winners and losers is hard enough for the professionals. Government should stay out of it.
— Jake Chervinsky (@jchervinsky) March 22, 2023
Blockchain Association criticized the Economic Report of the President from the Biden Administration. It is “disappointing” that other countries are increasingly receptive to the burgeoning crypto industry, while the U.S. continues to attack it.
Crypto influencer Scott Melker or The Wolf Of All Streets attacked the report by citing the regulators-led banking crisis. He claims banks no longer offer any fundamental value, nor do they act as an effective place to store fiat money.
Fred Ehrsam, the co-founder of Paradigm, revealed that 15% of the Economic Report of the President was dedicated to crypto FUD. The report also includes the government’s approach to the FedNow payment system and central bank digital currencies (CBDCs).
Operation Choke Point 2.0
The Economic Report of the President is the Biden Administration’s economic priorities and policies for the year. This indicates that Operation Choke Point 2.0 is real and the government and regulators are looking to de-bank crypto companies. While regulators have denied claims of any Operation Choke Point-type action against the crypto industry, the tone of the report and recent regulatory crackdown against the crypto raise concerns.
CoinGape earlier reported that Crypto leaders such as Nic Carter, Cathie Wood, Elon Musk, Arthur Hayes, and CZ have questioned the crypto crackdown by the regulators. Crypto had nothing to do with the banks’ investment decisions, nor the Fed’s decision to increase interest rates 19-fold in less than a year.
Also Read: Crypto firms Turn to Swiss Banks After Silvergate and Signature Fall
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