Antonio Juliano, the founder of decentralized exchange dYdX, believes that crypto builders should prioritize markets outside of the United States over the next five to 10 years. Juliano argues that builders will face fewer hurdles and have more opportunities for platform growth and user adoption in friendlier international markets. He suggests that builders should experiment and find product-market fit overseas before returning to the U.S. with more leverage.
Juliano’s comments mainly apply to startups rather than fully established projects. He acknowledges the importance of the U.S. market but believes that the lack of clear rules and regulations surrounding crypto in the country hinders innovation and scalability. The jurisdiction issue between the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission creates a gray area that adds complexity and uncertainty for crypto builders.
As the U.S. government continues to delay establishing crypto regulations, Juliano argues that the crypto sector needs to grow further to have more influence over U.S. policy. He emphasizes the need for crypto products with massive usage and product-market fit where users become vocal supporters, driving demand and prompting policymakers to take notice.
Brian Armstrong, the CEO of Coinbase, a leading cryptocurrency exchange, responded to Juliano’s post with a different perspective. Armstrong believes that the situation will improve in a much shorter time, possibly by next year.
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Wintermute CEO Evgeny Gaevoy also supports Juliano’s view, mentioning that it could take 2-3 years for crypto to gain enough success to have influence over U.S. regulations or possibly never if crypto fails to gain traction.
Both Juliano and Gaevoy highlight the importance of preserving this moment in history and supporting independent journalism in the crypto space. They suggest collecting the article as an NFT (non-fungible token), a unique digital asset that can represent ownership or proof of authenticity.
It is worth noting that the U.S. market is significant in terms of potential adoption and influence over global crypto policies. However, the current regulatory uncertainty creates challenges for crypto builders, particularly startups. Serving customers in the U.S. comes with compromises and hurdles that can hinder growth and innovation.
By focusing on international markets, crypto builders can experiment, iterate, and find product-market fit without the same level of regulatory uncertainty. Once they have established successful products and gained traction overseas, they can leverage their achievements to enter the U.S. market when the regulatory landscape becomes more favorable.
Ultimately, the goal of crypto builders like Juliano is to drive the widespread adoption of cryptocurrency and decentralized finance. They believe that by prioritizing markets outside the U.S. in the short term, they can lay the foundation for long-term growth and influence that will benefit both the industry and individual users.
While there are differing views on the timeline for regulatory improvements in the U.S., it is clear that the crypto sector needs to continue to push for regulatory clarity and advocate for policies that foster innovation and growth. The future of crypto depends on finding the right balance between regulation and freedom to develop transformative technologies and financial systems.
In conclusion, Antonio Juliano suggests that builders in the crypto industry should focus on markets outside of the United States for the next five to 10 years. By doing so, they can navigate regulatory uncertainties more effectively, experiment with new ideas, and establish product-market fit. Once they have gained traction internationally, they can re-enter the U.S. market with stronger leverage and contribute to shaping favorable regulations. The U.S. market remains important, but it is necessary to overcome current hurdles and compromises in order to achieve long-term growth and widespread adoption of cryptocurrencies.
