US Crypto Firms Grows Despite Rising Regulatory Pressure
Despite tougher rules, U.S. crypto firms attract nearly half of all global crypto investments, according to a new report.
Even with increased regulations in the United States, crypto companies continue to push forward. Almost half of all investments are going into U.S. crypto businesses, a report by Galaxy Digital says.
Released on July 14, the report found that U.S. crypto startups are getting a lot of attention from venture capital (VC) firms. These startups account for over 43% of all completed deals and raised more than 45% of the capital invested by VC firms.
Other countries like the UK, Singapore, and South Korea attracted 7.7%, 5.7%, and 5.4% of the capital investment, respectively. However, total investment in crypto and blockchain startups has been falling over the last few quarters.
The report revealed that only $720 million was raised by 10 new crypto VC funds in Q2 2023, which is the lowest since the start of the COVID-19 pandemic in Q3 2020. The amount of money raised in the last three quarters is less than what was raised in just Q2 last year.
While "Web3 category" companies had more deals, "trading category" companies raised more money. This is happening while the U.S. SEC is taking action against several U.S. crypto firms.
On July 13, a judge partially favored Ripple Labs in a case against the SEC, ruling that Ripple's XRP is not a security when sold on digital exchanges.
Ripple CEO Brad Garlinghouse believes the SEC is trying to stop innovation and the crypto industry in the U.S. He feels that the SEC's actions are not just about one token or one blockchain, but their overall attitude towards the crypto industry.
This comes after the SEC took actions against major crypto exchanges Binance and Coinbase on June 5 and 6. The SEC accused them of breaking securities laws and offering unregistered securities.
