Billionaire Tim Draper Warns The US SEC, Says Bitcoin Cannot Be Stopped
Recently, the legendary venture capitalist Tim Draper shared his thoughts on the changing world of crypto. Asserting that “Bitcoin is here to stay,” he criticized the SEC for clinging to outdated regulations that hinder crypto innovation. He argued that the US must embrace the evolving financial landscape or risk losing its technological leadership.
He went so far as to suggest that presidential candidates may adopt crypto to promote innovation.
Tim Draper Warns SEC Stifles Crypto Innovation
A billionaire and venture capitalist, Tim Draper, said much of the world is seeing giant leaps in progress. At the same time, the SEC regulations are notorious for many American innovators. He said this puts a “dark cloud” over the US crypto space, pushing innovation abroad.
He stated:
“The SEC is living in the past. It’s an 80 year old set of laws that they’re clinging to, and it’s just time to change. You know, the world’s moved on.”
Tim Draper highlighted several frustrations with current SEC regulations regarding cryptocurrencies. He finds it “ludicrous” that he cannot conduct airdrops or place crypto bets on baseball games in the US, pointing to an inconsistency in stocks and crypto assets regulation. He reiterated a recent situation where House Majority Whip Tom Emmer and House Financial Services Committee Chairman Patrick McHenry raised concerns over the SEC approach to classifying airdrops as securities.
Draper argued that if cryptocurrencies were treated as currencies, they should be regulated like other currencies. They should be handled similarly to other assets if they’re considered assets. He warned the SEC that overlapping regulations are stifling innovation, pushing technological progress to other countries, and fears that the US could fall behind if this continues.
Furthermore, he predicted that SEC Chairman Gary Gensler’s legal defeats in court could lead to his removal from office. He also suggested that Gensler’s approach to regulating crypto has been ineffective, and as a result, he believes Gensler will eventually be fired. The truth is that Gensler’s aggressive regulations on crypto firms like Binance and Coinbase have marked his divisive SEC leadership. Therefore, republican lawmakers allege Gensler’s hiring practices favor candidates with left-leaning affiliations and urge his leave.
Meanwhile, Tim Draper was particularly excited about Bitcoin being in a leading position to challenge the fiat money supply. He pointed out rising inflation rates and eroded purchasing powers of traditional currencies and emphasized that more would start using Bitcoin to buy everyday things.
He stated:
“Bitcoin is our saviour…Eventually, we are all going to Bitcoin.”
“Hodl Your Own Bitcoin, Skip the ETFs”
He further went on to talk about self-custody with regard to cryptocurrency investments and never relying on ETFs. He wants everybody to hold their Bitcoin directly and ensure it is in their possession.
With Tim Draper continuing to invest and hoard more Bitcoin, he is literally the meaning of “hodler.” For him, Bitcoin is not just a digital asset. It’s one of the founding building blocks of a more robust global economy.
Draper continued by elaborating on how he invests in companies that build infrastructure for the cryptocurrency space. He mentioned having invested in Arkham, which puts names on Bitcoin wallets-a concept of interest for both users and the US Marshals Service. According to him, the token has been performing well, thus cementing its place on his list of successful investments.
He also talked about the diversity of his portfolio made up of early investments in projects like Tezos, Bancor, and Handshake.
He further explained how everything from passports to real estate deeds might someday exist on blockchain wallets. Tim Draper said smart contracts are one of the biggest inventions because business deals would be transparent and automated. He also spoke to regulations and the political landscape, noting that many of the innovations in the US were currently being developed overseas because of uncertainty around regulations.
Here, he reiterated a recent statement from Solana co-founder Anatoly Yakovenko, who said he was frustrated that most of the jobs in the Solana ecosystem could be in California or elsewhere in the United States but have become overseas.
Crypto Boom as Presidential Candidates Show Support
The seasoned investor remains optimistic, saying cryptocurrencies will be huge now that both leading candidates for the US presidency are in support. He insisted on balancing innovation and regulation, calling lawmakers to accept crypto if they want the United States to keep leading technologically.
Tim Draper’s interest in cryptocurrency was sparked when he realized Bitcoin’s transformative potential. Having faced setbacks such as losing a quantity of Bitcoin in the Mt. Gox incident, he has neither abandoned nor lost faith in the asset class.
He continues buying Bitcoin to this day. The entrepreneur sees it as superior to traditional currencies. He sees it as the means for storing value and transacting across borders without government interference.
From programs like Draper University, he has mentored thousands of entrepreneurs. His journey teaches us the ability to adapt and emerge strong in an ever-changing world of technology and finance.
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