A small number of unelected individuals in Washington D.C. are exercising alarming authoritarian power as regulators, counter to the Big Apple’s stated desire to move from antiquated financial systems to digital ones, writes Omer Ozden.
Web3 companies are leaving New York, fomented by Washington D.C.’s recent combative approach to regulating the industry. The Big Apple’s global relevance in relation to other major financial hubs is diminishing because regulators have spurned the wishes of the city’s leadership – but China and Hong Kong have proven it does not have to be this way.
Over the past 100 days, China and the U.S. have been on divergent paths when it comes to regulation. After an 18-month period of hostility, the former appears to have pivoted, rapidly implementing common-sense regulations in Hong Kong that foster innovation and encourage the sector to grow. This all happened because officials in Beijing listened to and supported Hong Kongers and their leaders, something U.S. securities regulators seem hell-bent on avoiding.
Omer Ozden is chairman of RockTree Capital, a Web3 investment fund from Beijing, and he was previously a U.S. securities attorney practicing in Hong Kong and New York.
New York City Mayor Eric Adams has embraced Web3 from the beginning, running a pro-crypto campaign and even taking his initial paychecks in bitcoin. This democratically elected official has touted the benefits and actively engaged the industry with a blueprint for the economic recovery of the city, but bureaucrats in D.C. disagree.
Currently, a small number of unelected individuals in Washington D.C. are exercising alarming authoritarian power in their seats as regulators, counter to New York’s stated desire to move from antiquated financial systems to digital ones.