Ark Invest’s Cathie Wood says U.S. financial regulators are using crypto as a scapegoat for their own mistakes in oversight of the country’s banking system. Wood says the regulators’ attack on crypto could have dire consequences for the nation.
Wood: crypto not responsible for U.S. banking crisis
On March 15, Congressman Tom Emmer sent a letter to Martin Gruenberg, the Chairman of the U.S. federal deposit insurance commission (FDIC).
The letter was aimed at finding out whether the regulator instructed traditional banks under its purview to desist from servicing crypto-related businesses, among other measures aimed at stifling crypto innovation, as alleged by recent reports.
While the house majority whip’s efforts to foster amenable crypto regulation in the U.S. have been applauded by web3 proponents, some have argued that congress may not have the power to tackle the regulators’ onslaught on crypto.
Responding to the Congressman’s tweet, Ark Invest’s Cathie Wood reiterated that if the FDIC and other regulators are weaponizing authority to flush out legal digital assets from the country, their efforts will ultimately prevent the U.S. from “participating in the most important phase of the internet revolution.“
Wood went ahead to outline how the Federal Reserve’s rate hikes and monetary policies over the past 12 months have triggered the ongoing crisis in the U.S. banking system.
Ark’s continued success
On March 15, reports emerged that Ark has successfully concluded a $16.3 million fundraiser for two new cryptocurrency funds.
According to its filing with the SEC, the ARK Crypto Revolution U.S. Fund LLC raised $7,281,630 from nine investors, while the firm’s ARK Crypto Revolutions Cayman Fund LLC raised $8,993,330.
The ARK Innovation exchange-traded fund recorded an inflow of $397 million in March, representing its largest funds inflow in nearly two years, according to the Wall Street Journal.
On March 14, Ark Invest purchased 92k Block shares via three Ark funds.