Alex Gladstein, the Chief Strategy Officer (CSO) of the Human Rights Foundation (HRF), believes Bitcoin will emerge stronger than ever despite “attacks” from the United States government.
Bitcoin Will Survive Attacks
In a tweet on March 24, Gladstein argues that while the short-term effects of such an attack on Bitcoin would be bearish, the coin would ultimately weather the storm and emerge stronger.
We need to be prepared for the US government to try and land a disabling blow across the entire cryptocurrency industry
The wind-up is happening, the punch may come soon
Bitcoin would eventually emerge even stronger but this would be very short-term bearish
— Alex Gladstein (@gladstein) March 24, 2023
“We need to be prepared for the United States government to try and land a disabling blow across the entire cryptocurrency industry. The wind-up is happening; the punch may come soon,” said Gladstein, “Bitcoin would eventually emerge even stronger, but this would be very short-term bearish.”
Gladstein’s comments come as the White House Council of Economic Advisers released the “Economic Report of the President” that devoted a whole chapter to the crypto industry. It confirms the negative sentiment in the United States executive branch, described by some as “a damning indictment of the space.”
While there is no clear evidence of an official crypto-crippling strategy, reports suggest that “Operation Choke Point 2.0” may be underway. Gladstein claims that there is evidence supporting its existence.
He points to a joint statement on crypto assets from the Federal Reserve (Fed), Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), which warned that decentralized blockchain networks are “highly likely to be inconsistent with safe and sound banking practices.” This has led observers to believe that the Biden administration and federal regulators are using any means necessary to cut off the industry from available banking services.
However, Gladstein argues that attacking the Bitcoin industry would be yet another event in a long line of historical events where the United States acts out of self-interest and self-preservation and, in doing so, cause harm.
He hopes that he is wrong and that America will embrace Bitcoin as the currency of freedom, which aligns with American values and the principles of capitalism.
Mounting Regulatory Pressure
The views of Joe Biden’s administration, through the recently issued report, can also be seen in recent events occurring in the industry.
This includes the Securities and Exchange Commission (SEC) going after Justin Sun, the founder of Tron, and the recent arrest of Terraform Labs co-founder Do Kwon.
Today we charged crypto entrepreneur Justin Sun and three of his wholly-owned companies for the unregistered offer and sale of crypto asset securities Tronix and BitTorrent.
— U.S. Securities and Exchange Commission (@SECGov) March 22, 2023
In addition, Silicon Valley Bank (SVB) is among the crypto-friendly banks that might have been a target for regulators over its ties to the industry.
Despite regulatory headwinds, Bitcoin is firm, trading above $28,000 as of March 24.