America’s Crypto Brain Drain: Can the U.S. Reclaim Its Tech Lead?

Bill Morgan and Paul Grewal recently took to X platform sounding alarm over the increasing regulatory scrutiny in the U.S. These concerns stem from the strict regulatory approach taken by Gary Gensler, Chair of the U.S. Securities and Exchange Commission.

I warned you all in March 2021 what Gensler would do. You all thought the attack on Ripple and XRP wouldn’t touch you. He acted against all of crypto. https://t.co/OIuJA6kbQ5 pic.twitter.com/YmyXBXGCDv

— bill morgan (@Belisarius2020) June 13, 2024

Bill Morgan, in his tweet, reminded the community that he had warned about Gensler’s actions as early as March 2021. He also expressed frustration that many believed the crackdown on Ripple (XRP) wouldn’t affect the broader crypto market. Morgan asserted that the crypto industry has felt the impact of Gensler’s actions.

Morgan’s concerns are echoed by Paul Grewal, who cited findings from the latest “State of Crypto” report. According to Grewal, the U.S. has experienced a 14% decline in its share of crypto developers since 2018. As a result, only 26% of global crypto developers are now based in the U.S.

Grewal noted that this decline has occurred despite an increase in onchain activity and the institutional adoption of blockchain technology. He warned that the U.S. risks losing its global leadership in technological innovation if the current trend continues. This sentiment aligns with Morgan’s warning about the possible shift of blockchain innovation from America to Europe.

Both Morgan and Grewal are calling on the U.S. government to reassess its regulatory stance so as not to lose its competitive edge in the crypto space. They argue that supportive policies are required to retain talent and maintain the U.S.’s position as a leader in technological innovation.

The remarks also echo the industry sentiment that regulatory actions are necessary but should allow leeways for innovation and growth. As the debate harps on, the crypto community keenly awaits a policy shift for the future of blockchain technology in the U.S.

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