Is the U.S. Losing Its Crypto Crown? Regulatory Troubles Put U.S. Global Leadership at Risk!
Ark Invest analyst Yassine Elmandjra has suggested that due to regulatory uncertainty and declining crypto liquidity, the United States is at risk of losing its leading position in the global cryptocurrency ecosystem to countries such as the UAE, South Korea, Australia, and Switzerland.
Ark Invest analyst Yassine Elmandjra has outlined concerns that the U.S. is losing its lead in the global cryptocurrency market, pointing to regulatory uncertainty and declining liquidity. He highlighted that Bitcoin trading volume in the U.S. dropped by 75% from $20 billion per day in March to around $4 billion last week. Elmandjra also noted a $600 price discrepancy for Bitcoin on different exchanges, indicative of weaker price discovery in America.
Elmandjra emphasized the effects of regulatory uncertainty in discouraging both existing and potential players in the crypto space in the U.S. He referenced the reduced participation of U.S.-based trading firms, Jane Street and Jump Trading, as examples. This sentiment was echoed by Coinbase, which criticized U.S. regulators while acknowledging the potential of the United Arab Emirates (UAE) as a strategic hub for their operations.
Moreover, the UAE has attracted attention from Bitcoin miners like Marathon Digital, which announced its plan to establish the first large-scale Bitcoin mining operation in the Middle East in Abu Dhabi. Marathon's CEO Fred Thiel warned that the proposed tax on miners by President Joe Biden might push firms to explore opportunities outside the U.S. The analyst's note and these company actions hint at a shifting global cryptocurrency landscape with the U.S. potentially losing its edge due to regulatory challenges.
