U.S. Crypto Startups Dominate Venture Funding Amid Regulatory Optimism

In the last quarter of 2024, U.S.-based cryptocurrency startups captured 46% of global venture capital funding, according to a Galaxy Digital report.

This significant share placed the U.S. well ahead of Hong Kong (16%) and other regions, reinforcing its position as a hub for crypto innovation despite previous regulatory hurdles.

The surge in funding coincided with growing anticipation of pro-crypto policies under Donald Trump’s incoming administration. Ryan McMillin, co-founder of Merkle Tree Capital, attributed the increased investment to the U.S.’s robust financial landscape and the expectation of regulatory shifts.

“This change in leadership marks a shift from hostility to opportunity,” McMillin noted, predicting institutional investors will soon explore a broader range of crypto assets beyond Bitcoin and Ethereum.

The report also highlighted that despite a challenging regulatory environment, U.S. firms led 36% of all venture deals in the sector. With Trump’s administration and a pro-crypto Congress taking charge, analysts expect the U.S. to strengthen its dominance in the crypto space. Upcoming legislation on stablecoins and market structures could further encourage traditional financial institutions to enter the market.

While the SEC has aggressively pursued crypto firms, with $8.2 billion in financial remedies last year, the number of cases has declined, signaling a potential shift in enforcement priorities. As 2025 begins, industry leaders anticipate that supportive policies will drive even greater innovation and investment in U.S.-based crypto initiatives.