What Recent US Crypto Market Exits Mean for Users

<p>While
Bitcoin seems to be on the road to recovery, the last few months have not been
great for the crypto industry in the United States. It has been revealed that
Binance, one of the biggest exchanges in the world, considered shutting its
doors in the country. This also comes as popular UK digital bank <a href="https://fortune.com/crypto/2023/08/04/revolut-us-market-withdrawal-regulatory-uncertainty/">Revolut will stop offering</a> crypto services to
US users.</p><p>Just
last month, <a href="https://www.cnbc.com/2023/07/19/nasdaq-pauses-plans-to-launch-crypto-custody-services-.html">Nasdaq announced</a> that it would be pressing
pause on plans to release a crypto custody business. This comes after years of
heavy crypto adoption in the US. </p><p>At
the root of all of this is the unstable regulatory structure in the United
States when it comes to crypto. The Securities and Exchange Commission has
famously gone after Coinbase, Ripple Labs, and several other big crypto
companies. This, naturally, has caused some tension and anxiety within the
market. Large companies sense hostility from regulators, and crypto users are
on edge about how their precious tokens will be seen in the eyes of the law. </p><p>Rather
than deal with endless back-and-forth with US regulators, some companies find
it easier to cut ties with the US as a whole. But this exodus will have a
massive impact not just on the companies themselves but on the US-based crypto
users who rely on their services. </p><p>First,
this sort of thing rocks market confidence. The current price movement of major
tokens might be encouraging, but it is hard to stay optimistic about the future
of crypto in America when billion-dollar corporations feel like they cannot go
up against existing regulations. And this sort of environment then leads to
anxiety about using cryptocurrency. </p><p>For
those who use cryptocurrency speculatively, companies exiting the space means
that they can’t access the sort of services they usually do. Revolut exiting
the market means, for example, that there is one less service that American
crypto users can turn to. If this keeps up, buying and selling cryptocurrency
with major companies in the US will be much less accessible and this undoes
years of progress in the crypto space.</p><p>And
any major changes in Americans’ access to crypto will impact the overall market
price of major tokens, given that America is one of the biggest crypto markets
in the world. Then we have to consider those who don’t use cryptocurrency
speculatively. Many users leverage cryptos for gambling on sites like <a href="https://www.luckyblock.com/">Lucky Block
casino</a> which have become very popular. There are also people who use
cryptocurrency for domestic purchases and paying bills. These people, unlike
speculative traders, do not thrive in a volatile environment but prefer price
stability.</p><p>In
the best-case scenario, such people will see their tokens fluctuate wildly in
value because of the unstable market environment. In the worst-case scenario,
they will face roadblocks in buying cryptocurrency because of the exit of
market giants. </p><p>This
whole saga further highlights the importance of better crypto regulation in the
US for the sake of both the companies and people in the space.</p>

This article was written by FL Contributors at www.forexlive.com.