Antonio Juliano, the founder of decentralized exchange dYdX, ignited a debate when he suggested that crypto builders should cease serving U.S. customers for the next 5 to 10 years. Juliano’s comments, made in an August 25 thread on X (formerly Twitter), argue that the regulatory environment in the United States poses significant challenges for crypto startups, making it more practical to focus on overseas markets.
Regulatory uncertainty drives overseas focus
Juliano’s recommendation comes amid growing concerns about the lack of clear regulations surrounding the crypto industry in the United States. He emphasized that crypto startups could scale faster in friendlier overseas markets, stating, “Crypto builders should just give up serving U.S. customers for now and try to re-enter in 5-10 years. It’s not really worth the hassle/compromises.” Juliano added that the crypto sector needs to grow further to have more influence over U.S. policy, suggesting that focusing on finding product-market fits overseas could provide the necessary leverage for re-entry into the U.S. market.
Industry opinions vary on U.S. market strategy
Brian Armstrong, the CEO of Coinbase, offered a contrasting viewpoint, stating that the U.S. regulatory environment could improve much sooner, possibly by next year. Armstrong’s optimistic outlook was echoed by Wintermute CEO Evgeny Gaevoy, who suggested that a return to the U.S. market could be feasible in 2-3 years if crypto proves successful. These differing opinions highlight the division within the industry on whether to abandon the U.S. market entirely or to remain hopeful for quicker regulatory clarity.
As crypto builders weigh the pros and cons of serving the U.S. market, Juliano’s comments have added fuel to an already heated discussion about the future of crypto regulation in the United States. His suggestion to focus on overseas markets is a pragmatic approach, given the current regulatory ambiguity. However, it also raises questions about the long-term impact of such a strategy, especially when considering the U.S.’s role as a global financial leader.
In the backdrop of these debates, the U.S. government continues to lag in establishing clear crypto regulations, further complicating the decision for crypto startups. With the industry at a crossroads, the focus may indeed shift to overseas markets that offer a more conducive environment for growth and innovation potentially setting a new course for the global crypto landscape.