Cryptocurrency companies that once thrived in the US have been forced overseas in recent years. However, changes in regulations may bring them back.
The History of Crypto Offshoring
In 2017, when the SEC began to regulate cryptocurrencies as securities, many companies started moving offshore. This allowed them to avoid high taxes and gain some protection from regulators.
The SEC v. LBRY Case and Its Impact
The SEC v. LBRY case was a turning point. The court's decision demonstrated that most tokens could be viewed as securities if there was an expectation of profit, pushing many projects to seek safer havens abroad.
A New Hope for the Crypto Industry
With new initiatives for tax benefits and potential de-securitization of digital assets, companies might return to the US. Recent proposals from the Trump family could simplify the tax regime, and some regulations are being eased.
The changes happening in the US could bring many crypto projects back, providing a more stable and favorable legal environment for industry growth.
