US ‘dominates’ crypto startup funding in Q2: Report
Despite facing regulatory scrutiny in the United States, crypto firms continue to innovate, with nearly half of all capital investments flowing toward U.S. crypto businesses, according to a recent report.
Published by crypto investment firm Galaxy Digital on July 14, the report stated that U.S.-based crypto startups had a significant share of interest from venture capital (VC) firms.
The United Kingdom took 7.7% of capital investment, with Singapore and South Korea attracting 5.7% and 5.4%, respectively.
However, it was noted that the total amount of capital invested in crypto and blockchain startups continued to decline quarter-to-quarter.
“Only $720m was raised by 10 new crypto VC funds in Q2 2023,” it noted, pointing out that this is the lowest since the beginning of the COVID-19 pandemic in the third quarter of 2020.
It was further noted that while companies in the “broad Web3 category” had more deals, companies in the “trading category” raised more capital.
Related: SEC accepts BlackRock’s Bitcoin ETF application, signaling regulatory review
This comes amid the United States Securities and Exchange Commission taking action against a number of U.S. crypto firms in recent times.
Most recently, its case against Ripple, alleging that its native token XRP (XRP) is a security, was ruled partially in favor of Ripple on July 13, stating that it is not a security for retail sales.
Cointelegraph previously reported on June 18 that Ripple CEO Brad Garlinghouse believes the SEC is “looking to kill” innovation and the cryptocurrency industry in the U.S.
Garlinghouse argued that the SEC's handling of the Hinman speech documents during the Ripple case isn’t about “any one token or any one blockchain,” but more so the overall
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