{"id":463840,"date":"2025-02-22T17:00:12","date_gmt":"2025-02-22T17:00:12","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=463840"},"modified":"2025-02-22T13:09:20","modified_gmt":"2025-02-22T13:09:20","slug":"america-is-back-on-track-in-reclaiming-crypto-leadership","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/america-is-back-on-track-in-reclaiming-crypto-leadership\/","title":{"rendered":"America is back on track in reclaiming crypto leadership"},"content":{"rendered":"<p><em>The following is a guest post from <span data-sheets-root=\"1\">Steven Pu<\/span>, <span data-sheets-root=\"1\">Co-founder<\/span> of <span data-sheets-root=\"1\">Taraxa<\/span>.<\/em><\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s no question about it, <a href=\"https:\/\/cryptoslate.com\/people\/donald-trump\/\">President Trump<\/a>\u2019s inauguration is a watershed moment for American crypto innovators. In just little over a week, we\u2019ve seen a rapid series of crypto-friendly initiatives helmed by unambiguously pro-crypto leadership.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These initiatives are in stark contrast to the irrational persecutory stance taken by regulators of the previous administration. Whilst speculation stirs around geoeconomic outcomes, a transformed landscape will more importantly liberate previously stifled US-based developers. America is back on track to reclaim leadership in crypto.\u00a0<\/span><\/p>\n<h2><b>Persecutory Regulators Drained US of Crypto Talent\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Crypto is a fast-growing industry in which America can and must reclaim leadership. Since 2015, the crypto market has <\/span><a href=\"https:\/\/www.coingecko.com\/en\/global-charts#:~:text=The%20global%20cryptocurrency%20market%20cap,a%20Bitcoin%20dominance%20of%2056.35%25\"><span style=\"font-weight: 400;\"><strong>grown 107.7% annually<\/strong><\/span><\/a><span style=\"font-weight: 400;\">, from $5 billion to $3.68 trillion &#8211;\u00a0 in spite of unfriendly regulatory environments in every major economy worldwide. Much of this global growth was driven by rapid technical innovation, predominantly emanating from the United States, positioning the American market to capture the economic upside.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But persecutory regulators have heaved talent out of America with great force. The US had 38% of the world\u2019s crypto engineering talent in 2015, but <\/span><strong><a href=\"https:\/\/www.developerreport.com\/developer-report?s=ethereum-ecosystem\">dropped to just just half that at 19% by 2024<\/a><\/strong><span style=\"font-weight: 400;\">. In a market that\u2019s doubling every year, and home to the vast majority of the infrastructural technical innovations, this has been a massive brain drain. Given crypto\u2019s decentralized and digital nature, talent is highly mobile, and US regulators in the past have given them ample reasons to leave.\u00a0<\/span><\/p>\n<h2><b>Regulatory Failure on a Massive Scale\u00a0\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Prior to 2025, regulators sought to stifle American crypto innovation and economic opportunity using whatever means necessary. Regulators were not only busy persecuting compliant actors such as Coinbase, Kraken, and Uniswap, they also found plenty of time to <\/span><strong><a href=\"https:\/\/www.sltrib.com\/news\/business\/2024\/03\/20\/sec-attorneys-acted-bad-faith-utah\/?utm_source=chatgpt.com\">fabricate evidence to persecute startups like DEBT Box<\/a><\/strong><span style=\"font-weight: 400;\">. In many such cases, regulators <\/span><strong><a href=\"https:\/\/thehill.com\/business\/5105371-crypto-debanking-investigation\/?utm_source=chatgpt.com\">even used de-banking as leverage<\/a><\/strong><span style=\"font-weight: 400;\"> in its irrational crusade to destroy American crypto companies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But American consumers gained little from such regulatory zealotry, since the regulators failed to protect consumers from the most catastrophic crypto frauds in history. In 2022, <\/span><strong><a href=\"https:\/\/www.wsj.com\/finance\/regulation\/sbf-trial-ftx-customer-money-missing-6ba13914\">FTX lost over $8 billion of user deposits<\/a><\/strong><span style=\"font-weight: 400;\">, while <\/span><strong><a href=\"https:\/\/www.independent.co.uk\/tech\/terra-luna-ust-crypto-price-recovery-b2080241.html\">Terra Luna vaporized over $40 billion of market valuation<\/a><\/strong><span style=\"font-weight: 400;\"><strong>,<\/strong> causing a cascade of failures in companies such as BlockFi, Genesis, Voyager and Celsius -to name just a few. In every single case, regulators utterly failed to note any wrongdoing altogether or noted far too late.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There were no winners under this hostile and incompetent regulatory regime. Consumers lost, innovators lost, and America lost precious time to capture and foster this new and rapidly growing sector.\u00a0<\/span><\/p>\n<h2><b>Hope is on the Horizon\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">American builders are resilient. Despite having an actively hostile regulatory environment, America is leading the crypto industry on many fronts. Most of the key infrastructure powering the crypto industry, including their precursor technologies in cryptography and distributed computing, were invented right here in America.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We can see plenty of hope from just the first week of the new administration- an SEC subcommittee is set to reform crypto rulemaking under Hester Pierce; and a Senate subcommittee on digital assets will be formed under Cynthia Lumis. We\u2019re seeing positive changes in both regulatory and\u00a0 legislative tracks. It\u2019s a great beginning towards the short and long-term sustainability of a healthy American crypto industry.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Undoubtedly, there\u2019s still a great deal more to do. Much of the financial legislative and regulatory infrastructure still remains fundamentally incompatible with the crypto\u2019s decentralized nature. The Infrastructure Investment and Jobs Act of 2021, for example, <\/span><a href=\"https:\/\/www.dlapiper.com\/en-us\/insights\/publications\/2021\/11\/infrastructure-bill-including-crypto-broker-rules-becomes-law?utm_source=chatgpt.com\"><span style=\"font-weight: 400;\"><strong>expanded the definition of a \u201cbroker<\/strong>\u201d<\/span><\/a><span style=\"font-weight: 400;\"> to potentially include crypto wallets and even network miners and validators, making it impossible for anyone in crypto to stay in compliance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We nevertheless remain very hopeful.\u00a0 The new administration has strongly and swiftly signaled its intent to improve the regulatory environment, making it more transparent, rational, and pro-growth. Talks of a Bitcoin profit frenzy, or even geoeconomic power shifts, may energize communal discussion, but what\u2019s really at the crux of importance is the potential reversal of blockchain brain drain.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Restored freedom to innovate in America &#8211; that\u2019s what\u2019s on the line. There is now every chance that it will materialise in the crypto realm, sending America back on its way to reclaim its position at the helm of transformation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The following is a guest post from Steven Pu, Co-founder of Taraxa. There\u2019s no question about it, President Trump\u2019s inauguration is a watershed moment for American crypto innovators. In just little over a week, we\u2019ve seen a rapid series of crypto-friendly initiatives helmed by unambiguously pro-crypto leadership. These initiatives are in stark contrast to the [&hellip;]<\/p>\n","protected":false},"author":1554,"featured_media":463843,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,77968,25891,36,11],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>America is back on track in reclaiming crypto leadership<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/america-is-back-on-track-in-reclaiming-crypto-leadership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"America is back on track in reclaiming crypto leadership\" \/>\n<meta property=\"og:description\" content=\"The following is a guest post from Steven Pu, Co-founder of Taraxa. 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