Crypto's Center of Gravity Is Shifting Away From the U.S.


All right guys, well today we have an interesting theme. And we're going to spread this out over a couple of pieces, and I think a good way to kick it off is to point to a tweet which really deserves the visual, but it's from Brian quintessence of former CFTC commissioner who's now at andreessen Horowitz, and he shared a chart put together by electric capital that is the percentage of all of the world's crypto developers who are in the U.S.. The proportion of the developers in the U.S. has steadily declined year over year. In 2017, it was around 42% in 2018. It was around 39% in 2019. It was around 36% in 2020, it was around 33% in 2021. It was around 31%, and in 2022, it was around 28%. Now, I don't think there's anything wrong with developers coming from all over the world, and the best way to read this chart or the most hopeful way to read this chart would be that other developers from other places got in the game. However, I think, as you'll see from our topic today, that there might be something else going on, and certainly that was the point that Brian was trying to make. The comment that he added to the chart was this. For Gary gensler, this is what success looks like. The point of course is the U.S. seems to be determined to push crypto offshore, and that is the theme of the conversation today. So we're going to start with a piece by Noel atchison who used to be the head of research at coindesk and genesis trading that's called the future of crypto markets will be driven by developments in the east. Crypto investors need to keep an eye on geopolitical shifts playing out on the regulatory landscape, specifically some upcoming changes in Asia. Noelle writes, as political experts focus on the diplomatic dance and building tensions between the United States and China, punctuated by some balloon shaped comic relief that might end up not being so funny after all, a more benign battle is brewing in the halls of financial regulators. While local for now, nothing stays local for long and global markets. The potential ramifications go well beyond crypto markets, potentially shaping economic influence that. In this changing landscape, is more geo strategically important than ever. Earlier this week, Hong Kong securities and futures commission or SFC published a proposed text of its upcoming crypto regulations, slated to go into effect on June 1st, and opened it up for public comment. Its scope includes the licensing for crypto asset service platforms, which were originally only going to be allowed to service accredited investors. The SFC is now seeking input on whether or not retail investors should also be allowed to participate, and what types of protection should be in place. Also open for discussion as the range of quote unquote approved assets, which in principle would only include a limited selection of the most liquid tokens.

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