According to Cathie Wood, the founder of investment manager ARK Invest, the United States is currently falling behind in the bitcoin movement due to its regulatory system.
During her speech at Fortune’s Most Powerful Next Gen conference, Cathie Wood highlighted the shifting center of gravity within the bitcoin realm, emphasizing how it is moving away from the United States. She supported her point by mentioning Coinbase as an example, a digital currency exchange that recently obtained a license to operate in Bermuda and is also exploring opportunities for expansion in Singapore.
ARK Invest has gained significant recognition in the bitcoin community for its consistent and substantial purchases of Coinbase stock.
She added: “It would be nice if the U.S. were leading this movement, but we’re losing it, and we’re losing it because of our regulatory system”
The frustration surrounding the regulatory landscape of bitcoin in the United States is primarily focused on the Securities and Exchange Commission (SEC). This irritation stems from the SEC‘s stance that the industry does not need a specialized framework separate from existing securities laws, which has led to ongoing disputes with Coinbase and Ripple.
In addition, Cathie Wood drew attention to the significant events that unfolded in the industry, such as the dramatic collapse of FTX, which, in her view, served as a validation of the concept behind bitcoin.
She also highlighted the banking crisis this year, involving institutions like Silicon Valley Bank, Silvergate, and Signature Bank going under, which further emphasized the risks associated with centralized financial systems. Wood believes that bitcoin stands in contrast to these dangers, as it operates in a decentralized manner.
Explaining that the adoption of bitcoin stems from its appeal as a decentralized, transparent, and auditable monetary system, she highlighted that this concept gained traction following the 2008/2009 crisis when people lost trust in traditional financial services.
Wood noted that the concept of bitcoin was further validated by two recent crises. Specifically, she pointed out that the failure of FTX occurred due to its centralized, opaque, and non-auditable nature.