Is the US Losing Its Edge in the Crypto Startup Race?
What’s Behind Decline in US Crypto Startups?
Dear Readers,
The US has seen its share of successful crypto startups plummet from 80% in 2022 to just 20% today. This significant drop is linked to a tougher regulatory environment and increased scrutiny by the US Securities and Exchange Commission (SEC). Industry experts are concerned about the future of crypto innovation in the US under the current Democratic administration.
Regulatory Challenges and SEC Scrutiny
A report from the crypto founder network Alliance highlighted the downturn, with co-founder Qiao Wang attributing the decline to Democratic policies.
Wang warned that continued regulatory pressure could drive successful crypto startups out of the US entirely.
The SEC's intensified investigations into major crypto entities, including OpenSea, Coinbase, and Uniswap, have been a major factor. On August 28, OpenSea received a Wells Notice from the SEC, suggesting that digital collectibles on the platform might be classified as securities. This move has surprised many in the industry.
Devin Finzer, CEO of OpenSea, expressed concern that the SEC's actions could stifle innovation, potentially discouraging creators from pursuing digital art and blockchain projects.
Political Impact on Crypto Regulation
The SEC’s aggressive stance is also seen as politically motivated, particularly given former President Donald Trump’s recent launch of NFT collectibles. Ripple’s Chief Legal Officer, Stuart Alderoty, noted that a 1976 SEC ruling allowed art galleries to promote and sell art without SEC registration, which could challenge the SEC’s current approach.
As the 2024 elections approach, the political landscape remains crucial for the future of US crypto regulation. Trump’s pro-crypto stance, combined with the recent support from Robert F. Kennedy Jr., who has joined his campaign, could influence the direction of crypto policy in the US.
Also Read
Bitcoin Whales vs. Diamond Hands: Will BTC’s Future Be Bullish or Bearish?
Max Keiser Predicts U.S. Dollar’s Fall: Bitcoin to the Rescue?
3 Best Altcoins to Buy Before the Next Bull Run
PEPE Whale Dumps 330 Billion Tokens, Crash Ahead?
Any Feedback?
Get in touch with us here