In a recent post on social media platform
Winklevoss had previously done this publicly together with his brother Taylor supported former President Donald Trump, who donated $1 million each in Bitcoin to his re-election campaign.
Fear of regulation drives exodus of crypto companies from the US
Winklevoss marked the significant financial toll the Harris-Biden administration has imposed on the cryptocurrency sector, with legal costs claimed to have reached $500 million.
This figure reflects the ongoing investigation by the US Securities and Exchange Commission (SEC), which has been pursuing lawsuits and issued Wells Notices to several major industry players, including Binance, Ripple and Coinbase.
As a result, many companies have incurred significant legal costs in defending against regulatory actions, raising concerns about the government’s approach to cryptocurrency regulation.
The co-founder expressed concern about the prospect of a Kamala Harris presidency and suggested her administration could perpetuate the current presidency. regulatory landscape characterized by enforcement rather than guidance.
Winklevoss stated: “Vote Trump and these legal fees will go to $0. Vote for Harris and this figure will rise to billions.”
Cameron Winklevoss’s comments have prompted responses from several industry experts, highlighting the broader implications of regulatory strategies for innovation and growth within the sector.
Wayne Vaughan, a Bitcoin advocate and co-founder of the Tierion blockchain, echoed Winklevoss’s concerns: to emphasize that legal costs are only part of the damage.
Vaughan pointed out that many companies have left the United States or abandoned product developments due to fear of regulatory repercussions, reflecting a growing frustration within the crypto community over the perceived hostility of U.S. regulators.
James Murphy, on the other hand, a securities attorney and long-time supporter of the digital assets industry, also weighed in: suggestive that Winklevoss’ estimate of $500 million in legal costs could be conservative.
Murphy noted that this figure does not take into account settlements paid to the SEC by projects that cannot withstand lengthy legal battles, further illustrating the financial pressure on the industry.
Blockchain Association calls for leadership change at SEC
Bitcoinist before reported that according to a report from the Blockchain Association, a crypto-focused lobbying group, the cumulative costs of crypto companies fighting SEC lawsuits in recent years have reached approximately $426 million.
The report, published on October 31, criticized the SEC’s “regulation by enforcement” approach, which it said stifles innovation and economic growth. The association not only emphasized the legal costs but also job losses due to the regulatory environment.
The Blockchain Association called for a change in leadership at the SEC, framing the current regulatory strategy as a form of “litigation” that undermines the potential of the crypto industry.
Kristin Smith, the group’s CEO, urged cryptocurrency users and developers to call for leadership change, though she did not specify political affiliations or candidates in her message.
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