Speculation mounts that a regulatory attack on Bitcoin is coming
Former Coinbase CTO Balaji Srinivasan stirred speculation over U.S. regulatory actions on Twitter, writing, “The attack on Bitcoin is coming.”
The comment was made in agreement with Alexander Leishman, the CEO of River Financial, who called for Bitcoiners to stay humble “during all of this regulatory drama,” as regulators would come for Bitcoin in due course.
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In separate enforcement actions against Binance and Coinbase earlier this week, the legal filings made several allegations related to violating securities laws, including (in both cases) operating as an unregistered exchange.
The filings also named various tokens traded on each platform as securities, which could potentially impact their operations within the U.S. or result in widespread delisting.
Analyst Miles Deutscher compiled the 19 altcoins named by the SEC, displaying them in a Venn diagram to illustrate crossovers between the two exchanges.
Some Bitcoin maximalists supported the SEC enforcement actions, implying that an altcoin purge is needed to hasten Bitcoinization.
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In response, General Practioner at Castle Island Ventures, Nick Carter, posted a lengthy tweet berating maxis that cheered the SEC, saying the “cultists” did not consider Coinbase and Binance’s efforts in pushing the whole industry forward, including onboarding Bitcoiners and advancing BTC adoption.
“So why are they giddy about the possible obliteration of Coinbase and Binance, who have collectively onboarded 100m-200m individuals worldwide to crypto and, specifically, Bitcoin?”
Carter likened BTC maximalism to religious dogma and the need to find “moral high ground.” With that, he questioned the motives behind BTC maximalism, suggesting it comes from needing to be correct.
Otherwise, it would mean they picked a “God [that] was a false one.”
To this point, Bitcoin has enjoyed an implicit stamp of approval due to its fair token launch and perceived decentralization. But Srinivasan suggested that regulators will turn on Bitcoin soon enough.
He pointed out that President Franklin Roosevelt, who signed Executive Order 6102 in April 1933, also established the SEC after passing the Securities Exchange Act of 1934.
Executive Order 6102 required U.S. citizens to sell all but a small amount of personally-owned gold to the federal government for cash to bolster the money supply during the Great Depression. Citizens who refused could be subject to stiff penalties, including prison time or fines up to $10,000.
Srinivasan argued that the point of SEC and precious metal confiscations “was to establish state control over the economy,” insinuating a repeat of history.
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