Yassine Elmandjra, an analyst at ARK Invest, cautions that the United States runs the risk of losing its position as a leader in the battle for cryptocurrencies to nations like Switzerland, Australia, Korea, and the UAE.
Elmandjra cited the recent withdrawal of trading companies Jane Street and Jump Trading related to cryptocurrencies as the first indications of a larger response to the country’s unstable regulatory environment in a note to ARK Invest investors on May 22.
US Crypto Community
According to him, regulatory uncertainty is preventing existing firms and new entrants in the cryptocurrency market from investing. With more than $14 billion in assets under management, ARK Invest is a multinational asset management company led by CEO Cathie Wood.
Elmandjra also stated that the liquidity of cryptocurrencies on American territory has “diminished considerably,” stating that the volume of Bitcoin trades in the country had dropped by 75% over the previous two months. According to him, using data from Coin Metrics, it has decreased from $20 billion each day in March to roughly $4 billion during the past week.
- The US risks losing its lead in cryptocurrencies to other countries.
- Cryptocurrency liquidity has decreased significantly, from $20 billion to $4 billion in the past week.
- The UAE is an ideal location for crypto enterprises due to its positive regulatory approach.
In the meantime, some U.S.-based cryptocurrency enterprises are already starting to look overseas as the U.S. becomes more unfriendly towards digital assets and the businesses that deal with them.
Considering the UAE as a “strategic hub” for its business, Coinbase, which is suing the U.S. Securities and Exchange Commission for its unclear stance on cryptocurrency regulation, stated.
Not just Coinbase but other large companies are considering moving to the UAE. It was reported by Cointelegraph that Crypto Oasis co-founder Saqr Ereiqat described the UAE as an “ideal” location for new and existing crypto businesses because of its more positive regulatory approach.
