Launching crypto projects in the US is fraught with complexities, including legal uncertainties and regulatory pressures. These factors compel founders to seek more favorable conditions abroad.
Regulatory Barriers for Crypto Projects
Uncertainty in regulation and outdated tests like the Howey test put most new crypto projects at risk. These issues arise because until a token is released, any project must remain centralized, opening opportunities for SEC scrutiny.
Advantages of Offshore Jurisdictions
Offshore jurisdictions such as Switzerland and the Cayman Islands offer legal clarity for crypto projects. This allows founders to avoid excessive risks and reduce the costs of launching a cryptocurrency, thereby exacerbating investment attraction issues in the US.
The Future of the Crypto Industry in the US
The legal landscape needs to change to restore interest in inherently productive processes within the country. Regulators must recognize the unique features of the crypto industry and adapt their approaches, providing clear guidelines and support to stimulate sector growth.
The lack of clear regulation leads many crypto projects to move offshore. If the US wants to be a leader in this area, it needs to overcome existing barriers and create a more favorable environment for development.
