The United States is a giant, vibrant, and significant growth market for any industry – and crypto is no exception to this fact. Nevertheless, recent trends show a steady decline in the USA, as many significant companies withdraw their crypto operations.
Bitcoin search volume has reportedly declined by nearly 45%. Major exchanges are reporting that there has been a 26.6% drop in value within a 7-day period from 10 July this year. And numerous prominent exchanges do not serve US citizens with crypto any longer.
Recent concerns from the Senate, Congress, Government, and even from regulatory bodies have worked to degenerate the crypto position. The final trade-discouraging act was President Donald Trump’s tweet stating that the currency assists in anti-social activities, for example, drug trafficking.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Larry Cermak, who is the Head of crypto research at The Block, has predicted demise in crypto trend volumes on Twitter. He advises that US crypto-trading companies should withdraw operations or risk being investigated by regulators. This heralds as bad news for crypto moving forward, and it’s future in the US.
In May this year, Poloniex was the first to stop offering crypto to US citizens, stating its reason as unclear legislation on securities. Some crypto trading platforms like Bittrex have worked to geo-block US clients, while others, like Binance, have withdrawn crypto-to-crypto trade from the country altogether. Those platforms still serving US-based clients, like Bitfinex and BitMEX, are facing massive regulatory headaches, and are under investigation.
US regulators are calling for heavy regulation of the crypto industry. They aim to do this by making KYC (know your customer) identity verification mandatory, forcing amendment of crypto-brokers privacy policies. These brokers will then need to compromise on their privacy front, which was a critical factor that made crypto so accessible and attractive in the first place.
Digital currencies have faced even more speculation and criticism since the news of Facebook’s Libra cryptocurrency project. Cryptocurrencies threaten the global supremacy of the US dollar, which is partly why US regulators are pushing for more controls. Nonetheless, with this crusade, they are murdering the US crypto market.
Regulators looking for the dollar to legitimately compete with crypto, need to find better ways of doing so rather than opting for the banning route. If crypto is ultimately banned in the US, or the industry is forced to die, US regulators cannot influence or control what happens outside the country, where crypto will bloom. That means that crypto is the inevitable future, and sooner or later, the US will have to accept this.
Nonetheless, as crypto appreciates more adoption and increased mainstream recognition, regulatory-compliant exchanges could be the future – as Binance has come to realize. Binance is currently looking to launch a US-only exchange fully American regulatory-compliant, which will mark their return to the US industry.