In a recent discussion on the X platform, Antonio Juliano, the founder of the decentralized exchange dYdX, has suggested that cryptocurrency developers should shift their focus away from serving customers in the United States for the next five to ten years due to a challenging regulatory landscape. Juliano, an industry veteran, urged crypto builders to instead concentrate on experimenting in other global markets and consider returning to the US when conditions are more favorable.
Juliano emphasized that the complexities and compromises involved in catering to the US market may not be worthwhile at this stage. He pointed out that the majority of the cryptocurrency market is based overseas, making it more prudent to innovate in these markets, establish product-market fit, and then consider re-entering the US market with greater leverage.
It’s essential to note that Juliano’s comments were primarily directed at startups rather than established cryptocurrency projects. He argued that startups could achieve faster growth and user adoption by prioritizing markets outside the United States, which often exhibit greater openness and fewer regulatory restrictions.
The cryptocurrency industry has long been grappling with regulatory uncertainty in the US. The lack of clear rules and regulations, particularly concerning the jurisdiction of agencies like the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), has impeded the progress of the sector.
Juliano’s proposition for the crypto sector to gain more influence over US policy involves achieving substantial growth and amassing significant user bases. He stressed the importance of demonstrating the value and demand for crypto products on a global scale before expecting to shape policy decisions in the US.
Juliano’s remarks sparked a diverse range of responses from crypto executives. Brian Armstrong, CEO of Coinbase, one of the leading cryptocurrency exchanges, expressed optimism that progress in the US regulatory environment might occur sooner than expected, possibly within the next year. He conveyed confidence in the US’s capacity to adapt to and embrace cryptocurrencies.
Evgeny Gaevoy, CEO of Wintermute, aligned more closely with Juliano’s perspective, suggesting that it might take two to three years for the US to become crypto-friendly if the industry succeeds, or it might never happen if crypto does not gain significant traction. Gaevoy encouraged crypto builders to prioritize overseas markets initially.
However, Juliano also acknowledged the importance of crypto policy advocacy in the US. He recognized that influencing policy decisions takes time, and much of the world often follows the US’s lead. He emphasized the need for crypto products with extensive usage and strong user demand to play a pivotal role in shaping policy outcomes.
Notably, due to regulatory uncertainties in the US, many crypto companies have been exploring opportunities in other markets with clearer regulations, such as the UK and Brazil. Coinbase, for instance, has been aggressively expanding its global presence, with operations in countries like Germany, Ireland, Italy, and the Netherlands. The company is also contemplating potential moves to the UK and Dubai, seeking more favorable regulatory environments. Similarly, Binance is actively pursuing regulatory compliance in the UK despite facing a ban by the UK regulator last year
