Since FTX's bankruptcy in 2022, many crypto companies have been forced to leave the US market due to concerns about their shrinking living space in the US; although the results of the November election are undecided, many companies are planning to return to the US due to Trump's supportive attitude towards the crypto industry, which poses a new challenge for markets such as South Korea and Singapore that hope to attract crypto companies.
On August 7th, Caixin reported that Trump's supportive statements about cryptocurrencies have successfully refocused global crypto investors' attention on the US, with venture capitalists reportedly considering more investments in the US and various crypto companies planning staff movements.
Last month, Trump doubled down, saying that if he is elected, he will add bitcoin to the government's reserve assets and make the United States the global capital of cryptocurrency, causing cheers in the industry. At the same time, it was revealed that Democratic presidential candidate Harris is reaching out to the cryptocurrency industry through her advisors and showing a cooperative attitude. $BTC.CC$ Meanwhile, it was revealed that Democratic presidential candidate Harris is reaching out to the cryptocurrency industry through her advisors and showing a cooperative attitude.
Cosmo Jiang, portfolio manager of investment firm Pantera Capital, said that in recent years, investment opportunities in the crypto industry have shifted overseas due to the unfavorable regulatory environment in the United States. However, as the situation in the United States changes, capital allocation in the crypto industry is shifting.
The ebb and flow of this trend has equally posed challenges for regions such as Singapore, Dubai, the UK, that are striving to become industry leaders. It is said that Copper Technologies, a London-based cryptocurrency custody company, is considering refocusing its business on the US, on the premise of a Trump victory.
Trump's strong support and Harris's attitude adjustment have given confidence to the crypto industry, while the listing of Bitcoin and Ethereum ETFs has made the market more convinced of an improved regulatory environment. Since the Bitcoin ETF was listed in the US in January, the asset has attracted about $19.4 billion in net inflows, setting a historical record.
In addition, according to data from research company Kaiko, shortly after the won surpassed the dollar as the largest currency for cryptocurrency trading volume in the first quarter, the dollar regained its top spot in May, accounting for more than 50% of global trading volume.
In the past few years, many crypto companies have had to withdraw from the US market to avoid regulatory pressure due to the collapse of the FTX crypto exchange and tightening regulations in the United States, causing South Korea and other countries to absorb many crypto companies that have left the US during this "refugee period".
However, Kelvin Koh, co-founder and chief investment officer of Spartan Capital, said that a clearer regulatory regime in the United States means more capital will flow to the country.
Richard Galvin, co-founder of Digital Asset Capital Management, went further to say that given the size of the US capital markets, other markets may follow the US's example, which means the crypto industry will usher in a bullish ripple effect.
Although the final outcome of the November election in the United States cannot be determined, some optimists believe that the crypto industry will face a more friendly policy environment globally, which means that even if the United States gets the biggest share of the cake, other markets can also benefit from the overall increase in the size of the cake.
Although the final result of the November US election cannot be determined yet, some optimists believe that the crypto industry will usher in a more friendly policy environment globally, which means that even if the US gets the largest piece of the cake, other markets can also benefit from the overall growth of the cake.
Editor/Somer