In recent years, a significant number of cryptocurrency companies have chosen to operate outside the United States, moving their operations to offshore zones. This trend was driven by both regulatory uncertainty and the desire to minimize the company’s tax liabilities. However, recent changes in US policy and regulation may signal the beginning of the reverse process — the return of cryptocurrency companies to the US market.
Historical context of regulation
In 2017, the U.S. Securities and Exchange Commission (SEC) announced that cryptocurrency tokens can be considered securities, which automatically brought them under the federal securities laws. This statement became an important precedent and had a significant impact on the ICO market (Initial Coin Offering). In 2019, the SEC developed a system for assessing the security status of tokens, which made it possible to more clearly define the legal framework for market participants. The tax consultants also concluded that token sales are taxable in the US, adding another layer of regulatory complexity for companies.
The LBRY case and its consequences
One of the key events that influenced the decision of cryptocurrency companies to go offshore was the LBRY \ case. Judge Barbadoro ruled that tokens can have both consumer and investment value, which has destabilized the landscape of cryptocurrency projects. This decision was one of the factors that pushed projects to move abroad for legal activities.
Offshore decentralization
Offshore structures offered cryptocurrency companies not only the opportunity to circumvent some regulatory barriers, but also tax advantages. However, such structures created internal problems, such as the complexity of managing and regulating infrastructure. Many companies have sought to strengthen their positions in the market, but until recently this was difficult due to the uncertainty of the regulatory environment.
Slow turn: policy changes
With the arrival of the Trump administration and the appointment of Esther Pierce as chair of the U.S. Securities and Exchange Commission, there are signs of possible regulatory easing. Peirce expressed interest in providing benefits for token issuers, which could be an important step towards creating a more favorable environment for cryptocurrency companies in the United States.
New approaches and perspectives
A number of experts and entrepreneurs have proposed new approaches to regulating and supporting the cryptocurrency sector. For example, David Kerr and Miles Jennings proposed a new corporate form of DUNA, which could make it easier for cryptocurrency companies to do business. Eric Trump proposed a preferential tax regime for cryptocurrency tokens, which could also be an incentive for companies to return to the US market. Tax lawyers have developed new approaches to fundraising that can make investing in cryptocurrency projects more attractive to investors.
Hope for a comeback
Analyzing the current situation, we can assume that the SEC and other regulatory authorities may listen to the recommendations of experts and create conditions for the return of cryptocurrency companies to the United States. This may include developing a clearer and more predictable regulatory framework, as well as providing tax breaks and other incentives to attract investment in the US cryptocurrency sector. However, this scenario will require time and a concerted effort from regulators, businesses, and the investor community.
