The United States risks losing its leading position in the cryptocurrency industry, losing the championship to the UAE, South Korea, Australia and Switzerland, warns ARK Invest analyst Yassin Elmanjra.
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In the report, the expert noted that the recent flight of market makers Jane Street and Jump Trading from the States is the first sign of a backlash against ill-conceived regulation in the country.
“Once filled with well-established and trustworthy institutions, the crypto ecosystem in the US is now facing a void that is likely to dampen the interest of other large investors,” Elmanjra explained.
According to the analyst, the ambiguous regulatory background negatively affects existing companies and scares off new players.
In 2023 SEC pointed to violations in the work of Bittrex, Coinbase, Kraken, Gemini and Genesis. CFTC filed a lawsuit against Binance and its CEO Changpeng Zhao.
Crypto-liquidity in the United States has “significantly decreased”, according to an expert from ARK Invest. Citing data from Coin Metrics, he added that over the past two months, the volume of bitcoin trading in the country has fallen by 75%, from $20 million a day in March to $4 million in May.
Elmanjra also noticed that the rate of the first cryptocurrency on Binance.US was $600 higher than on other exchanges. In his opinion, this indicates incorrect pricing in the United States.
Recall that in May, Coinbase management allowed the creation of a hub in the UAE. In the same month, the company announced the launch of an international digital asset futures exchange, Coinbase International Exchange.
The institutional platform Bakkt is also considering the possibility of developing business in Europe.
Earlier, Circle CEO Jeremy Allaire did not rule out the US losing its leading position in the sector in favor of the EU, Hong Kong and the UAE.
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