US Q2 Crypto Startup Funding Heavily Favors

In spite of regulatory scrutiny in the United States, the cryptocurrency industry continues to thrive, with a significant portion of capital investments flowing into U.S.-based crypto businesses, as indicated by a recent report published by crypto investment firm Galaxy Digital on July 14.

US Q2 Crypto Startup Funding Heavily Favors

The report highlighted that nearly half of all capital investments were directed toward US Q2 Crypto Startups, while the United Kingdom accounted for 7.7%, and Singapore and South Korea received 5.7% and 5.4% of the capital investment, respectively.

Despite the strong interest from venture capital (VC) firms, the total amount of capital invested in crypto and blockchain startups showed a decline quarter-to-quarter. In Q2 2023, only $720 million was raised by 10 new crypto VC funds, representing the lowest amount since the onset of the COVID-19 pandemic in Q3 2020.

The decline in funding coincides with regulatory actions taken by the United States Securities and Exchange Commission (SEC) against various US Q2 Crypto Startup firms in recent times.

In the ongoing case between the SEC and Ripple Labs, a judge ruled in favor of the payments and technology company by stating that XRP is not considered a security when sold on digital asset exchanges.

Ripple CEO Brad Garlinghouse has previously expressed concerns about the SEC’s approach, believing that it is stifling innovation and the cryptocurrency industry in the United States. Garlinghouse emphasized that the SEC’s handling of the Hinman speech documents during the Ripple case is indicative of the overall stance the SEC has taken towards the crypto industry. Despite the regulatory challenges, U.S. crypto firms remain determined to innovate and advance the cryptocurrency ecosystem.