With the delays in the approval of ETF applications by the United States Security and Exchange Commission (SEC), some analysts in the crypto space have predicted the crash of the U.S crypto market which they say will be left behind if nothing changes in the next few months.
Since the beginning of the year, several applications have been submitted to the SEC for Bitcoin ETFs which have all been turned down or decisions on the ETFs have been delayed for no clear reason. In fact, some analysts believe the decision on any ETF may have to wait till 2019 because of this attitude.
Speaking on the attitude of the SEC to regulation in the industry, one of the analysts and also an investor, Joseph Young said the U.S market may be big but it will lose its strength as other countries continue to be more appealing to members of the industry.
“We will see many crypto companies leave the US in the next few months without a doubt. US is a huge market. But, see the work South Korea, Japan, Switzerland, Malta, UK, and many other countries are doing with regulation.”
The founder of Morgan Creek Digital Assets, Anthony Pompliano also agrees with this statement, saying that although the time when companies will leave the U.S is not certain, they will certainly leave.
Several other members of the industry have spoken concerning the unfriendly nature of the U.S Government towards the cryptocurrency industry through SEC.
The founder of Techcrunch and partner at Arrington XRP Capital, Michael Arrington has expressed his frustrations concerning the expenses they had incurred as a result of demands by SEC. Arrington is considering moving to Asia due to the high cost of demands by SEC which have not yielded any result in terms of regulation for the industry.
He added that Hedge funds have also been probed by Sec but it has not come up with any regulations to guide the activities of the industry. This and many others are the factors affecting the cryptocurrency market in the U.S which make analysts believe the market may be experiencing death soon.
As insignificant as it may seem, this delay could cripple the U.S market while other countries continue to enjoy a boom in the industry and since profit drives the market, companies may not hang around for long if things don’t get better and the SEC may have no industry to regulate when this happens.