Solana Co-Founder Talks About Crypto Regulation in the US
- Solana co-founder Anatoly Yakovenko said that the uncertain regulatory crypto policies in the US are driving firms away.
- He noted that the US accounted for 42% of global open source blockchain developers, but by 2022, it dropped to 29%.
- He asked regulators to not drive crypto entrepreneurs away due to scams.
- Yakovenko also asked lawmakers to make efforts to understand crypto and blockchain.
The co-founder of popular blockchain Solana (SOL), Anatoly Yakovenko, said that the regulation of cryptocurrencies in the United States has become a major issue for blockchain-focused businesses in the region, adding that due to the lack of a clear regulatory framework, more and more blockchain developers are leaving the region. It is clear that the regulators are nail-bent on pushing crypto out of the country.
The Solana co-founder stated that for young entrepreneurs in the crypto space who seek to grow big in the US, it has become a hassle to comply with the authorities despite spending significant amounts of money and resources on lobbying the lawmakers. Yakovenko noted that there is no path to a clear, unbiased, and substantial framework for the regulation of cryptocurrencies.
In an interview with Fortune, Yakovenko noted that in 2018, the US accounted for 42% of global open source blockchain developers, but by 2022, it had dropped to 29%. A major reason behind this outflow of developers could be a budding, crypto-friendly environment in rival countries like Singapore and China.
The Solana co-founder noted that since the industry is still in its early stages, there have been a large number of scams, but that doesn’t mean that regulators must work to end the innovation that comes with blockchain technology. The executive gave examples of tech giant Google and social media platform Reddit as well.
“A well-functioning economy shouldn’t punish an entire industry for the actions of its worst elements. Many of us are here because we want to create real value, and we want American values at the foundation of the world’s most impactful companies,” said the Solana co-founder.
Yakovenko said that no regulation is perfect, and beyond making laws, the United States “government should be at the forefront of investing in blockchain research and development,” while adding that “policymakers need to experiment with the technology themselves.” He believes that we should learn about blockchain and cryptocurrencies before framing laws.
As reported earlier by Bitnation, the Internal Revenue Service (IRS) and the Department of Treasury have teamed up to propose the regulation of digital asset brokers in the United States. The two federal agencies have shared their proposal with the Federal Register, as per which crypto brokers will have to report “gross proceeds for all sales or exchanges of digital assets starting on January 1, 2025.”
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
