US cryptocurrency regulatory policy is attracting growing criticism. Industry players see it as an obstacle to the development of the crypto industry in the United States. Recent analysis from ARK Invest highlights the consequences of this policy, including a dramatic decline in crypto liquidity. Faced with an unfavorable regulatory context, it is the future of the American digital economy that is at stake!
US Regulatory Hostility Could Hurt Their Crypto Interests
The United States risks paying dearly for the regulatory hostility they inflict on crypto firms present on their soil. This tends to show a recent analysis by ARK Investthe investment management firm run by Cathie Wood.
ARK’s conclusions about chaotic regulatory dynamics are unequivocal. They indicate that the United States could be overtaken by several other territories, more favorable to the emergence of crypto firms.
Among these, ARK cites the United Arab Emirates, Korea, Austria and Switzerland. All of these countries are potential host countries for crypto firms, several of which have announced their departure intentions.
For ARK, the regulatory situation of the American crypto industry is not enviable. Not only because it hinders the development of long-established players in a national crypto ecosystem. But above all because it sets up a barrier for new nuggets in the sector, discouraged by the current regulation of the industry.
“In the US, regulatory uncertainty appears to be discouraging both existing businesses and new entrants into the crypto space”, notes ARK. And the figures for this trend seem particularly alarming.
Indeed, the company reports a massive collapse in the liquidity rate of cryptocurrencies in the United States. Thus, the volume of bitcoin exchanges in the United States would have fallen, last week, to $ 4 billion per day.
Knowing that it was $20 billion per day in March, this collapse would be around 75% in two months! It’s a carnage that highlights regulatory concerns recently raised by hedge fund manager Paul Tudor Jones.
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