The US was formerly the centre of the cryptocurrency sector, but other nations with less ambiguity and better legislative direction from their governments are now competing more and more with it. Numerous cryptocurrency businesses are shifting and leaving the United States. However, the future of cryptocurrencies still appears to be promising.
USA – New York, NY – June 27, 2023 America’s dominance in the field of digital assets appears to be under jeopardy.
The United States was formerly the industry’s core, but other nations are increasingly becoming more and more competitive. This is brought on by a number of elements, such as a perceived conflict between the crypto business and authorities and regulatory uncertainty.
As a result, many businesses in the crypto sector are deciding to move to other nations with more hospitable regulatory conditions. Regulating organizations have been faced with tough issues due to the industry’s rapid innovation. Because of the murky nature of the rules, traditional businesses in the United States are reluctant to participate in the sector.
There is now what is being referred to as a crypto crackdown as a result of the Securities and Exchange Commission (SEC) and other authorities, like the Commodity Futures Trading Commission (CFTC), aiming to increase their oversight and control over blockchain companies.
The United States formerly had 40% of cryptocurrency developers, but that figure has steadily declined and is expected to dip below 30% by 2022. The proportion of traffic to blockchain-related websites from American consumers has also declined.
« When I arrived in the United States in 2018, the USA and Silicon Valley were the most prominent hub for the cryptocurrency industry, » says Francesco Bisardi, a growth specialist and marketing with one of the country’s top blockchain organizations.
« Silicon Valley and the industry, in general, have undergone significant changes since then. While the US still boasts the largest market capitalization, other markets with more transparent and favorable regulations are now the preferred destinations for businesses in the industry, » the crypto veteran says.
Switzerland, Singapore, and Malta, for example, have all aggressively courted crypto firms and established legislation considered as more friendly of the industry, while the European MiCA regulation provides some clarification on crypto standards.
« Hong Kong, with Beijing’s support, aspires to be the leading financial hub for APAC, which includes crypto, » argues Bisardi, who believes the US will lose its competitive edge in this field if reforms are not made soon and the problem is not handled.
China has opened a national blockchain center to educate half a million professionals and announced the « Web3 Innovation and Development White Paper, » with the goal of making Beijing a major global innovation center.
CRYPTO’S FUTURE
The future of cryptocurrencies is still seen as bright by experts. « The next bull run will confirm it, » adds Bisardi, « I remain confident that the crypto world is a growing market. » The previous adviser to Vite Labs (Blockchain), Nonfiction Design, and TechCrunch continues, As far as technology is concerned, I still anticipate still a prominent position for BTC, and I am pretty enthused about the convergence of NFT Smart Contracts and DAO.
The IT expert, who is 29 years old, wants American regulatory organizations to be more clear in order to buck the present tendency.
The Italian blockchain specialist residing in Silicon Valley contends that despite obstacles and difficulties related to market structure, regulations, and market cycles, « the cryptocurrency business will continue to develop and expand, heading towards the early/late majority of users. It is only a question of time before we successfully overcome these challenges.
Learning from past mistakes, adopting a more deliberate and strategic approach, and emphasizing data-driven decision-making would all be extremely beneficial to the business. Not only would this lower the hazards, but it will also stop any other unwanted possible setbacks.
Losing its competitive edge would be a serious loss for the US economy since the crypto sector is a quickly expanding business with the ability to produce tax revenue and employment.
To sum up, the US can still remain competitive, but there is a need for clear and precise regulatory advice, a supportive environment for crypto enterprises, investments in research and development, and the promotion of legal use cases.
