Is the US trying to kill crypto?

Is the US out to kill crypto?

Maybe.

Three years ago, the majority of the firms in the sector that Andrew Durgee’s company invested in were based in the US.

This year, he estimates that just one out of every 10 will be – a reflection of his firm’s judgement that the country has been growing increasingly hostile to digital assets such as cryptocurrencies and tokens.

“The administration really has a target on the industry,” says Mr Durgee, managing director of the crypto division for tech firm Republic. “The regulatory uncertainty makes the investments in the US higher risk.”

The sector was already under pressure, after prices of virtual currencies collapsed last year. Further damage came from the meltdown of several high-profile firms, including FTX, run by the so-called “Crypto King” Sam Bankman-Fried, whom prosecutors have accused of conducting “one of the biggest financial frauds” in US history.

Jolted by the turmoil, US regulators stepped up their policing of the sector, which authorities say has been on notice since at least 2017 that their activity runs afoul of US financial rules intended to protect investors.