The United State crypto ecosystem is facing a “ void ” of well-established & credible institutions, according to an analyst from Ark Invest. 
The United States risks misplacing its position as a leader in the cryptocurrency race against countries carrying the United Arab Emirates, Korea, Australia, and Switzerland, warns ARK Invest analyst Yassine Elmandjra.
In a May 22 note to ARK Invest clients, Elmandjra looked to the recent crypto-related pullback of trading enterprises Jane Street and Jump Trading as the early signs of a broader reaction to precarious regulation in the country.
“Once populated by well-established and credible institutions, the crypto ecosystem in the U.S. now faces a void that is likely to put interest among other institutional investors on hold.”
“ In the U.S., regulatory uncertainty seems to be discouraging both enterprises and new entrants in the crypto space, ” he added.
ARK Invest is a global asset management enterprise headed by CEO Cathie Wood that presently holds an additional $14 billion in assets.
Also, Elmandjra acknowledged that crypto liquidity on U.S. soil had “ diminished considerably, ” noting that Bitcoin trading volume in the U.S. had fallen 75 in the last two months. It’s down from $20 billion per day in March to just $4 billion in the past week, he spoke, citing data from Coin Metrics.
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Meanwhile, with the U.S. growing increasingly hostile toward digital assets and the companies that trade with them, some U.S.-based crypto enterprises are already beginning to look away.
The crypto exchange which is suing the U.S. Securities and Exchange Commission for its lack of clarity on crypto regulation, spoke that it’s presently considering the UAE as a “strategic hub” for its business.
That crypto exchange is not the only major enterprise looking to the UAE as a potential home. As reported, Saqr Ereiqat, the co-founder of venture-building enterprise Crypto Oasis, spoke that the UAE’s more optimistic regulatory approach toward digital assets makes it an “ ideal ” location for new and existing crypto businesses.
(TOM MITCHELHILL, Cointelegraph, 2023)