Crypto law firm Gresham International has advised crypto firms not to have a presence in the United States given the country’s regulatory stance on the industry, according to a June 6 press statement shared with CryptoSlate.
“The US has become unpredictable, which makes it clear that Crypto is not welcome, even for those who try to follow the rules.”
Gresham International stated that companies operating in the country should expect to fully register as a security or commodity, which would remove much of their international protection.
Due to the unfavorable regulatory environment, the law firm said it would no longer offer its services to US-based crypto companies. It added that it would only “maintain an office and team for ‘rear’ and ‘first’ clients only for the time being.”
Reform of the justice system
In addition, the law firm continued that the U.S. legal system needs to be reformed, as it had “consistently seen lower levels of legal and compliance work from clients who approach us and have only used a U.S.-based attorney.”
Gresham International said:
“Legal work in the US is often regarded as inferior by international lawyers. This is due to the limited training U.S. attorneys receive. In some states, lawyers are not even required to take a bar exam once they have completed their law degree. Most American lawyers only study law for one year after college and then pass a two-day exam to become a lawyer.”
The law firm is currently assisting Sushi with its international protocol after US regulators launched an investigation.
Unfavorable regulatory environment
Crypto firms in the US have mainly operated under unclear regulations, with the US Securities and Exchange Commission (SEC) taking a regulation-by-enforcement approach to the industry.
For context, the financial regulator has filed multiple lawsuits against some of the largest crypto companies in the country alleging they violated federal securities laws. In addition, the Commission’s continued classification of various digital assets as securities has led to strong reactions from the community.
Meanwhile, the US Congress appears divided over the emerging industry. While several Republican leaders have introduced bills to regulate the crypto industry, Democratic politicians seem to have taken an anti-crypto stance.
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