Crypto law firm Gresham International has advised crypto firms not to have a presence within the United States, considering the country’s regulatory posture towards the industry, according to a June 6 press statement shared with CryptoSlate.
“The USA has become unpredictable, making it clear that Crypto is not welcome, even for those who attempt to follow the rules.”
Gresham International stated that firms operating within the country should expect to fully register as a security or commodity, which would remove many of their international protections.
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Due to the unfavorable regulatory environment, the law firm said it would no longer offer its services to US-based crypto firms. It added that it would only be “maintaining an office and team for ‘rear guard’ and ‘tier one’ clients only for the time being.”
Legal system reform
Additionally, the law firm continued that the U.S. legal system needs to be reformed as it had “constantly seen a lower standard of legal and compliance work from clients that approach us who have used just U.S.-based Counsel.”
Gresham International said:
“Legal work in the U.S. is often considered lower standard by international lawyers. This is due to the limited training U.S. Lawyers receive. In some states, lawyers do not even need to take a bar exam if they graduate law school. Most U.S. lawyers only take one year of legal studies after university then pass a two-day exam to become a lawyer.”
The law firm is currently assisting Sushi with its international protocol after U.S. Regulators undertook an investigation.
Unfavorable regulatory environment
Crypto firms in the U.S. have operated mainly under unclear regulations, with the U.S. Securities and Exchange Commission (SEC) adopting a regulation-by-enforcement approach toward the industry.
For context, the financial regulator has filed multiple lawsuits against some of the largest crypto firms in the country, alleging that they violated federal securities law. Additionally, the Commission’s constant classification of several digital assets as securities has drawn strong reactions from the community.
Meanwhile, the U.S. Congress appears divided towards the emerging industry. While several Republican leaders have pushed bills to regulate the crypto industry, Democrat politicians seem to have adopted an anti-crypto stand.
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