US Crypto: From Hostile to Hopeful

America is regaining its footing in the global crypto landscape, with a new administration signaling a shift towards a more supportive regulatory environment. This change is a stark contrast to the previous administration's hostile stance, which drove away talent and stifled innovation. The crypto market has grown exponentially despite unfriendly regulatory environments worldwide, with much of the global growth driven by rapid technical innovation from the United States. However, persecutory regulators have led to a significant brain drain, with the US losing nearly half of its crypto engineering talent between 2015 and 2024.

Prior to 2025, regulators targeted compliant actors and startups alike, using de-banking as leverage in their crusade against American crypto companies. This regulatory zealotry failed to protect consumers from catastrophic crypto frauds, such as the collapse of FTX and Terra Luna, which cost users billions. The hostile and incompetent regulatory regime resulted in losses for consumers, innovators, and the country as a whole.

Despite the challenges, American builders have remained resilient, leading the crypto industry on various fronts. The new administration has taken steps to improve the regulatory environment, with an SEC subcommittee set to reform crypto rulemaking and a Senate subcommittee on digital assets to be formed. While there is still much work to be done to align financial infrastructure with crypto's decentralized nature, the new administration has signaled its intent to create a more transparent, rational, and pro-growth environment. The potential reversal of blockchain brain drain and restored freedom to innovate in America could send the country back on its way to reclaiming its position as a global leader in the crypto realm.