The explosive growth of the Bitcoin arena and the cryptocurrency sector as a whole has caught the attention of global regulators.

Speaking to CNBC, Jesse Powell, CEO of Kraken, which oversees one of the largest and oldest cryptocurrency exchanges in the United States, told CNBC about possible drastic measures, especially after threats from the US government.

Regulatory Repression and the Crypto Industry:

The cryptocurrency industry has been booming since mid-2020.

Thanks to the massive increase in the price of Bitcoin, the proliferation of non-fungible digital tokens (NFTs), the growth of decentralized finance (DeFi), and many more, the cumulative market capitalization of all cryptocurrencies has expanded by 600% to over $2 trillion.

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Of course, this amazing progress could not go unnoticed.

As was somewhat expected, the United States was among the first to respond.

The Treasury Department’s FinCEN proposed what appeared to be hasty new rules, which were shelved due to time constraints and lack of clarity, while Treasury Secretary Janet Yellen repeatedly flirted with concerns about a lack of appropriate legislation.

Jesse Powell, CEO of the US platform Kraken, commented about the strict measures being put in place and was particularly concerned about FinCEN’s suggestion that people who own cryptocurrencies in private digital wallets need to verify their identities if Make transactions worth $3,000 or more.

His statement was as follows:

Something like that could hurt cryptocurrency and kind of kill the original use case, which was just meant to make financial services available to everyone.

Hasty and short-sighted approach by the USA:

Although Powell did not provide details about the appropriate regulations, he did point out that the US is somewhat short-sighted when it comes to the cryptocurrency industry.

Additionally, he believes that the world’s largest country by nominal GDP could take a page from other countries’ regulation handbooks, as he expressed:

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I hope the United States and international regulators will not take too much of a narrow view on this subject.

Some other countries take it seriously and take a long-term view, such as China in particular.

As for his answer about the possibility of banning cryptocurrencies in the world as a whole, it was as follows:

Perhaps the genie is out of the bottle and trying to block him at this point will make him more attractive.

It will surely send the message that the government considers this a better alternative to its own currency.

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