In a recent post on social media platform in progress.
Winklevoss, along with his brother Taylor, had already publicly supported former President Donald Trump, donating $1 million in Bitcoin each to his re-election campaign.
Regulatory Fears Spark Exodus of Crypto Firms from the United States
Winklevoss highlighted the significant financial toll that the Harris-Biden administration has imposed on the cryptocurrency sector, claiming that legal costs have reached $500 million.
This figure reflects continued oversight by the U.S. Securities and Exchange Commission (SEC), which has continued lawsuits and has issued Wells Notices to several major industry players, including Binance, Ripple, and Coinbase.
As a result, many companies have incurred significant legal costs to defend against regulatory actions, raising concerns about the administration’s approach to regulating cryptocurrencies.
The co-founder said he was alarmed by the prospect of a Kamala Harris presidency, suggesting her administration could perpetuate the current regulatory landscape characterized by application rather than orientation.
Winklevoss said: “Vote Trump and these legal fees expenses go to $0. Vote Harris and that number will reach billions.
Cameron Winklevoss’ comments prompted reactions from various industry experts, highlighting the broader implications of regulatory strategies on innovation and growth within the sector.
Wayne Vaughan, Bitcoin advocate and co-founder of the Tierion blockchain, echoed Winklevoss’ concerns: emphasizing that legal costs represent only part of the damage.
Vaughan pointed out that many companies have left the United States or abandoned product development due to fears of regulatory repercussions, reflecting growing frustration within the crypto community over perceived hostility from U.S. regulators.
James Murphy, on the other hand, a securities lawyer and long-time supporter of the digital asset sector, also spoke: suggesting that Winklevoss’ estimate of $500 million in legal fees might be conservative.
Murphy noted that this figure does not take into account settlements paid to the SEC by projects unable to sustain protracted legal battles, illustrating the financial strain placed on the industry.
Blockchain Association calls for leadership change at SEC
Previously a Bitcoinist reported that according to a report from the Blockchain Association, a crypto-focused lobbying group, the cumulative cost of crypto companies fighting SEC lawsuits over the past few years has reached approximately $426 million.
This report, released October 31, criticizes the SEC’s “regulation by enforcement” approach, which it says stifles innovation and economic growth. The association highlighted not only the legal fees but also job losses resulting from the regulatory environment.
The Blockchain Association has called for a change in leadership at the SEC, describing the current regulatory strategy as a form of “legal warfare” that undermines the potential of the crypto industry.
Kristin Smith, the group’s CEO, urged cryptocurrency users and developers to advocate for a change in leadership, although she did not specify any political affiliation or candidate in her message.
Featured image of DALL-E, chart by TradingView.com
