US Crypto Ecosystem Faces Void: ARK Invest Warns of Lost Race to UAE, Korea, Aus
• The US crypto ecosystem is facing a “void” of well-established and credible institutions, according to an analyst from ARK Invest.
• The US risks losing its position as a leader in the cryptocurrency race against countries including the United Arab Emirates, Korea, Australia and Switzerland.
• U.S.-based crypto firms are already beginning to look elsewhere for better regulatory environments such as Coinbase considering the UAE as a strategic hub for its business.
US Crypto Ecosystem at Risk
Analyst Yassine Elmandjra from ARK Invest warns that the United States crypto ecosystem is facing a “void” of well-established and credible institutions, putting innovation in the US at risk. He believes that due to regulatory uncertainty, existing firms and new entrants in the US crypto space are being discouraged, leading to liquidity diminishing considerably on US soil.
Risk of Losing Position in Crypto Race
Elmandjra further notes that this lack of regulation could lead to the US losing its position as a leader in the cryptocurrency race compared to countries like UAE, Korea, Australia and Switzerland. This has caused some U.S.-based crypto firms to start looking elsewhere for better regulatory environments – most notably Coinbase considering setting up a strategic hub in UAE.
Jane Street & Jump Trading Pullback
The analyst sees recent pullbacks of trading firms Jane Street and Jump Trading as early signs of broader reaction towards precarious regulation in the country. He noted that Bitcoin trading volume had fallen 75% over two months from $20 billion per day in March to just $4 billion by May 22nd according to Coin Metrics data.
Coinbase Considering Strategic Hub In UAE
Coinbase has sued the U.S Securities and Exchange Commission (SEC) for its lack of clarity on crypto regulations while simultaneously considering setting up a strategic hub in UAE – citing it’s friendly attitude towards digital assets with clear legislation protecting investors interests while promoting investment into blockchain startups within their jurisdiction .
Overall it seems like if governments don’t step up their regulation game soon they will risk losing their positions as leaders within the cryptocurrency market while also denying themselves potential economic opportunities related to blockchain technology investments . This could lead other nations taking advantage of these opportunities instead which could have huge implications especially when you consider how much money is now flowing into this asset class globally .