According to an ARK Invest analyst Yassine Elmandjra, the US crypto sector is witnessing a “void” of well-established organizations. This means the United States is at the risk of losing its status as the cryptocurrency leader to the nations namely United Arab Emirates, Australia, Korea, and Switzerland. ARK Invest is a global asset management company led by CEO Cathie Wood.
The analyst cited recent crypto-related pullbacks of trading firms such as Jump Trading and Jane Street as the early indication of the country’s unstable regulation. Initially, the country was populated by well–established and credible institutions in the crypto ecosystem but now it is void. As a result, it’s most likely to put other institutional investors off the nation. This all can be attributed to the regulatory uncertainty that seems to discourage both existing and new entrants in the US crypto space.
The same report states that crypto liquidity in the US territory has reduced considerably with Bitcoin trade volume declining by 75% in the last two months in the US. The Coin Metrics Statistics also indicated that Bitcoin’s everyday trade volume dropped from $20 Billion in March to $ 4 Billion in May. Thus, it can be inferred that the United States is becoming increasingly hostile to digital assets and the corporate dealing with them.
Several US-based crypto enterprises have already started to look abroad. Coinbase which is suing the US SEC for the lack of clarity on crypto legislation has started testing and analyzing UAE as its strategic hub.