The US was once a technological hub. Now, it was once a technology. In other words, there are other regions gaining dominance in the segment. While it is not exactly the fault of the US, there is a sector where the country needs to tighten its grip. The digital asset industry is growing faster globally; however, the US is surprisingly walking at a slower pace.
According to the Coinbase Survey, which saw the participation of 151 institutional investors, 90% of the respondents agreed to invest more in digital assets, provided the US regulators offer clarity on how they will be treated. The same number of respondents stated in the survey that they will either maintain their current investments or increase their holdings in the future. Needless to say, the increase is primarily based on how much clarity the US regulators provide.
Markets around the world are headed in the direction of becoming crypto hubs. On the other hand, the US looks to be taking a disappointing turn that is likely to put its leadership in big question.
Institutional investors seek clarity in the rules related to digital assets. Around 62% believe that they will maintain the holding, compared to 28% who have expressed their interest in increasing the holding of digital assets.
According to a report by Electric Capital, the United States has lost a significant share of the global industry. Indeed, now is an ideal time for regulators to take charge of the situation. This step’s significance stems from 90% of respondents indicating that clarity will increase their confidence in the market. At this juncture, the US market would not want to miss out on investments of this magnitude.
According to additional data from the Coinbase Survey, 78% of respondents want a clearer definition of digital assets and their classifications; 71% want to know how their investments in digital assets will be treated, and 65% want to know how regulations will treat custodial obligations.
A lack of clarity is affecting the US market to the extent that 68% of respondents are forced to term the current situation unfavorable. Only 6% of participants said that the current situation of the digital asset industry is favorable.
The Coinbase Survey has also covered a portion of institutional investors that may lower their holdings. This amounts to 12%, a small number, but this could trigger a mass withdrawal in the future.
The Electric Capital Survey also revealed that the growth rate of Web3 development in the United States has decreased to 29% from 40%. In other words, the United States continues to lose its position in the world, which can only be regained if regulators act with greater transparency.
Coinbase is a crypto exchange platform headquartered in San Francisco with a global reputation since 2012. This is evident from all the major Coinbase reviews, which also reflect the unique features that are offered by the platform to its customers.
The Coinbase Survey was conducted by Escalent and involved investors spanning venture capital, hedge funds, and asset management firms. The objective was to understand the US market and regulations better.