Crypto Assets Great Migration: Why the U.S. Holds an Advantage in Global Infrastructure Competition

The cryptocurrency industry is breaking free from the early crypto-punk anti-establishment constraints. The United States, with its clear regulations, capital acquisition, and corporate adoption advantages, is leading the development of global crypto infrastructure. This article is derived from a piece by Kava Labs and is organized, translated, and written by ForesightNews. (Previous context: Are Americans happy? Trump raised the H-1B visa fee 'to 100,000 dollars', community analysis: India will become another Silicon Valley) (Background supplement: The U.S. is going to buy Bitcoin! Congress is looking for Michael Saylor and Tom Lee to find a way: purchase 1 million BTC within five years) The cryptocurrency industry is gradually freeing itself from the constraints of early crypto-punk anti-establishment rhetoric and entering a transformation phase marked by the vigorous rise of institution-friendly infrastructure. Initially, the innovations in the cryptocurrency field were cross-border, and now it is actively adapting to the realities of geopolitical regulatory policies and benefiting from them. Notably, conducting projects in crypto-friendly jurisdictions with clear regulatory frameworks has outstanding advantages, and the U.S. has been particularly prominent in this regard — the current administration is vigorously promoting crypto-friendly policies, forming a stark contrast to the stance of the previous president. We have previously explored how the U.S. has successfully positioned itself as a global cryptocurrency center through proactive legislative measures (such as the GENIUS Act and the CLARITY Act), as well as by building a national decentralized physical infrastructure network (DePIN) and advancing Layer 1 blockchain projects, opening a new chapter for the crypto space and laying a solid foundation. This article will continue on the aforementioned theme while incorporating recent discussions surrounding U.S. cryptocurrency reserves, analyzing the key role of capital acquisition in attracting artificial intelligence and crypto projects. First, we will explore the importance of regulatory clarity, examining how it creates a safer operating environment for developers while boosting confidence among institutional investors. Next, we will focus on the unique advantages of the U.S. as a major capital allocator and analyze how this position makes the U.S. an ideal choice for establishing and operating crypto projects. Finally, we will delve into how these factors drive U.S. corporate adoption of crypto technology, ultimately concluding why the U.S. may dominate the global infrastructure competition. Regulatory Clarity We previously discussed the impact of anti-crypto policy agendas on crypto projects' decisions to stay in or enter the U.S. The more ambiguous and complex the regulatory rules, the more likely projects are to face unnecessary scrutiny and penalties. During Gary Gensler's tenure as chairman of the U.S. Securities and Exchange Commission (SEC), his 'regulation-first enforcement' policy exemplified this issue. In stark contrast to Gensler's era, the Trump administration actively utilized its authority to clarify regulatory uncertainties and vigorously promoted a pro-crypto agenda. This was manifested in the president's willingness to revoke anti-crypto executive orders issued by the previous administration and, under the leadership of the new pro-crypto SEC chair Paul Atkins, the establishment of a special task force for cryptocurrencies. The mission of this task force is to provide clear regulatory guidance for crypto assets under the federal securities laws. When the government fully commits to and effectively implements pro-crypto regulatory policies, it creates an environment for domestic projects to plan long-term strategies — project teams can be confident that they will not face targeting or penalties simply for existing. This is undoubtedly a significant advantage compared to those regions still in regulatory gray areas or bound by heavy administrative oversight policies. The regulatory clarity in the U.S. directly enhances institutional investor confidence. The government incorporates relevant policies into the legal system, allowing institutional investors to explore the allocation of cryptocurrency as an additional asset class with peace of mind. Furthermore, this situation creates a virtuous cycle: attracting more capital into the sector, which further incentivizes companies to choose to develop domestically in the U.S. Observing the speed of U.S. institutional adoption of cryptocurrency, we can roughly foresee its future development trajectory. From Grayscale launching the first Bitcoin investment vehicle GBTC in 2013 to Michael Saylor and MicroStrategy becoming the first publicly traded company to hold Bitcoin, the adoption rate of cryptocurrency was low and fraught with potential legal and regulatory hurdles at the time. Since then, under the support of the new government's clear regulatory framework, the pace of adoption has accelerated at an unprecedented rate, with numerous publicly traded companies incorporating Bitcoin ETFs into their balance sheets. Capital Acquisition A frequently overlooked advantage of U.S. projects is their proximity to the world's largest venture capital ecosystem. From financial centers like Silicon Valley, New York, and Chicago to emerging tech markets like Austin and Miami, it is undoubtedly an attractive time for crypto startups seeking capital support. U.S. investors are highly concentrated, resulting in financing rounds on a scale that international projects find hard to match. In November 2022, the FTX collapse had long-term effects on investors, coupled with regulatory uncertainties during the Biden administration, which led the crypto industry into a slump. However, with Donald Trump winning the presidency in the fourth quarter of 2024, the crypto industry began to see a rebound in venture capital. His pro-crypto agenda became a catalyst for renewed investment, instilling greater confidence in the long-term feasibility of the sector among venture capitalists. November 2022 marked a critical juncture; during this period, the FTX collapse triggered industry tremors, coinciding with the public release of ChatGPT 3.5, which led to a surge in investments in the artificial intelligence sector, which now accounts for 37% of total venture capital. U.S. venture capital has shown explosive growth, while the proactive adoption of innovative technologies by institutions has further accelerated this trend. Those crypto and AI projects operating outside the U.S. not only face more stringent regulatory barriers than U.S. companies, but due to the passing of the executive order allowing 401( investors to access alternative assets, they also cannot tap into the vast capital resources in the U.S. This policy shift and the result of allowing cryptocurrencies to be included in U.S. 401)K( investment plans have created a two-tier market, where U.S. projects can secure the capital needed to build enterprise-grade infrastructure, while international teams remain reliant on smaller retail adoption with limited capital allocation capabilities. Corporate Adoption What drives the return of cryptocurrency and AI investment to the U.S. is not just the factor of funding or regulatory clarity. Projects that are rooted in the U.S. and fully leverage U.S. infrastructure are often more favored by American enterprises. This is because these projects are more familiar with local regulatory compliance requirements, have rich operational experience, and face relatively lower political risks. U.S.-based AI and cryptocurrency projects have many overlaps in infrastructure and data center construction, allowing U.S. investors to devise more centralized and precise investment strategies based on familiar technological systems. Subsequently, U.S.-based projects can leverage the network effects triggered by corporate adoption. As the...