BeInCrypto, in its latest report from its cryptocurrency industry survey, has released that the United States has emerged as a hub for cryptocurrency firms, luring entrepreneurs in search of expertise and venture capital funding for the developing blockchain sector. However, a recent analysis suggests that these firms must catch up in uptake and increasingly difficult regulatory obstacles.
According to the survey, as included in the report, the number of Americans who now own cryptocurrencies is 16%, which examined the situation of cryptocurrency adoption in the United States. This number shows a sharp slowdown in adoption compared to earlier years.
In the report, Coinbase was named one of the leading pioneers of the United States cryptocurrency industry. Revenues for the business reached $708 million in the second quarter of 2023, showing strong financial performance. Despite its success, Coinbase was said not to have escaped the general trend of slower adoption.
It was also revealed that the relatively strict regulatory framework is one of the leading causes of the slow cryptocurrency acceptance in the United States. The report cited that the United States fell behind nations like Vietnam, the Philippines, Ukraine, and India in Chainalysis’ 2022 index measuring worldwide cryptocurrency usage. Surprisingly, Australia topped the list, with 18% of poll respondents claiming to hold cryptocurrencies.
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CEO of Coinbase Speaks On The Growing Regulatory Discrepancies
The BeinCrypto report decried that the cryptocurrency businesses have had to deal with legal disputes with regulatory bodies, which has added to the regulatory difficulties. Bittrex, a popular participant in the cryptocurrency exchange market, recently found itself in a legal dispute with the Securities and Exchange Commission (SEC).
In April, the exchange decided to cease operations in the United States due to an inability to find a solution, underscoring the severity of the regulatory pressure on the cryptocurrency industry. The CEO of Coinbase, Brian Armstrong, allegedly spoke with House Democrats on the issue of growing worries about regulatory clarity and its effects on the sector.
These gatherings aimed to start a discussion about American cryptocurrency policy and identify strategies for fostering innovation while protecting investors.
Brian Armstrong Advises the Blockchain Industry, Emphasizes Obeying Rules
While addressing journalists from BeinCrypto, Brian Armstrong advised that stakeholders in the United States will need to work together to create solutions that enable sustainable growth for cryptocurrency businesses and broader adoption of blockchain technologies while adhering to regulatory frameworks as the global cryptocurrency scene changes.
Armstrong confessed that he feared the United States may lose its influence in the cryptocurrency industry. He added that entrepreneurs face unpredictable futures whenever they move to set up an office in the United States.
Amid a massive crackdown by the SEC and other similar authorities in the United States, cryptocurrency companies have shifted their attention to other markets. This was made known by the dYdX exchange founder, Antonio Juliano, who made an official statement on the 25th of August while also speaking to journalists with BeinCrypto.
Juliano, who also has his company headquartered in San Francisco, added that the challenges cryptocurrency companies in the United States face, in the real sense of it, is not worth the current rewards – “especially when you have more rewarding opportunities elsewhere.” He also confessed that his company could not legally offer its services from its San Francisco headquarters due to suppressing operating laws.