According to a report by Galaxy Digital, cryptocurrency entrepreneurs based in the United States received 46% of global venture capital financing in the final quarter of 2024.
This substantial proportion of the market positioned the United States significantly ahead of Hong Kong (16%) and other regions, thereby solidifying its status as a centre for crypto innovation, despite the fact that it had previously encountered regulatory obstacles.
The increase in financing was concurrent with the increasing expectation of pro-crypto policies under Donald Trump’s forthcoming administration. Ryan McMillin, co-founder of Merkle Tree Capital, credited the increased investment to the U.S.’s robust financial landscape and the anticipated regulatory adjustments.
McMillin observed that this change in leadership signifies a transition from hostility to opportunity, and he anticipates that institutional investors will soon investigate a broader array of crypto assets beyond Bitcoin and Ethereum.
The report also emphasized that U.S. firms were the primary participants in 36% of all venture transactions in the sector, despite the challenging regulatory environment. Analysts anticipate that the United States will keep up its leadership in the cryptocurrency sector as a result of the administration of Donald Trump and a pro-crypto Congress. The upcoming legislation regarding stablecoins and market structures may serve as an additional incentive for conventional financial institutions to enter the market.
Despite the SEC’s aggressive pursuit of crypto firms, which resulted in $8.2 billion in financial remedies last year, the number of cases has decreased, suggesting a potential shift in enforcement priorities. Industry leaders anticipate that supportive policies will stimulate even more innovation and investment in crypto initiatives based in the United States as 2025 commences.
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