Could U.S. anti-crypto stance spread to Europe?

Could U.S. anti-crypto stance spread to Europe?

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Now that the U.S. government has fully thrown off the veil and is openly hostile to crypto, could it use its vast power to influence governments in Europe to follow a similar line? 

The U.S. gloves are off

The U.S. has thrown its cap in the ring as regards its anti-crypto feelings, and so now it is obvious why the Securities and Exchange Commission (SEC), headed up by Chairman Gary Gensler, has been so obstructive towards crypto companies, and why it has used the blunt tool of enforcement rather than sit down and discuss how these companies can comply with regulations.

It would seem that this U.S. administration has made the decision to try and eradicate crypto from its shores, possibly from the perspective of trying to defend the dollar from what it might perceive as the threat of superior payment systems arising out of the amazing innovations in the crypto sector.

The SEC appears to be spending an inordinate amount of its time on a tiny crypto asset class, at a time when the banking system in the U.S. is on the edge of collapse. Gensler is asking for far more resources to be given to his watchdog agency in order to bring more enforcement actions against crypto companies.

U.S. power and influence on the wane

U.S. power and influence may be on the wane, given that the BRICS countries have announced that they will be creating a common currency, which is expected to eventually rival the dollar, especially when taking into account that this currency is expected to be backed by real commodities.

The U.S. dollar, having been taken off of its last remaining gold backing by President Nixon in 1971, is backed by nothing except the word of its government and its military might.

However, be that as it may, such huge global changes in the reserve currency are likely to take quite a bit of time to play out, and the U.S. possibly has a bit more time with which to use its power.

U.S. needs Europe

The U.S. will probably know that a ban on crypto, just within its own frontiers, may not lead to the full crushing of this industry. What happened when China tried to do the same thing is a lesson.

Therefore, the U.S. ban would be so much more impactful if it could persuade the European bloc to do the same. Not only on the political front, but also in banking, much influence could be brought to bear by the U.S. 

Next crypto bull market driven from Asia and other regions?

However, there are particular areas of the world that are far more out of the control and influence of the U.S. It might appear that China has rethought its stance on crypto, and it may be allowing Hong Kong to act as an experimental area in order to benefit from the innovations in crypto tech, without tainting the Chinese mainland.

Other countries in Asia have certainly not closed their doors on crypto, and in Latin America, and Africa, there appears to be more of a welcoming environment for crypto.

With this in mind, could the next crypto bull market be driven by Asia, Latin America, and Africa? This is certainly a possibility, and should countries from these regions foster the technological break-throughs that could lead to cheaper, faster, and more secure crypto payments, then they would undoubtedly benefit.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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