Antonio Juliano, the founder of decentralized exchange dYdX, has sparked a heated debate by suggesting that crypto builders should forgo serving U.S. customers for the next 5 to 10 years. In a thread on X, formerly known as Twitter, Juliano argued that the U.S. market presents too many regulatory hurdles for crypto startups, advising them to focus on overseas markets for faster growth and user adoption.
Regulatory hurdles and market focus
Juliano’s comments come at a time when the U.S. is grappling with a lack of clear regulations surrounding the crypto industry. The jurisdictional gray areas involving the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have created an uncertain environment for crypto startups. Juliano emphasized that crypto builders 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.”
Divergent opinions from Industry leaders
Brian Armstrong, the CEO of Coinbase, offered a contrasting viewpoint, suggesting that the U.S. regulatory landscape for crypto could improve much sooner than Juliano anticipates. “I see your point — but I think it will be better in a much shorter time. Probably by next year, if I had to guess,” Armstrong responded. Wintermute CEO Evgeny Gaevoy also chimed in, agreeing with Juliano but offering a more optimistic 2-3 years timeline if crypto proves successful.
The debate initiated by Juliano’s comments highlights the complexities and uncertainties that crypto builders face in the U.S. market. While some industry leaders believe that the U.S. will eventually establish clear regulations, the lack of current guidelines has led others to advocate for a temporary focus on overseas markets.
As the crypto industry continues to evolve, the question of whether to serve U.S. customers remains a point of contention. Juliano’s advice to focus on overseas markets is rooted in the belief that crypto needs to grow further to have more influence over U.S. policy. His comments also underscore the importance of finding product-market fits in regions with more favorable regulatory climates. With divergent opinions from industry leaders, the debate is far from settled, but it serves as a critical discussion point for the future of crypto, both in the U.S. and globally.