In the fourth quarter of 2024, nearly half of all global crypto VC funding flowed into startups based in the United States, according to Galaxy Digital’s latest Crypto and Blockchain Venture Capital report. The U.S. captured a commanding 46% of capital investment, significantly outpacing Hong Kong, which secured 16%. The country also led in deal count, with 36% of global crypto VC deals involving U.S.-headquartered companies. U.S. Dominates Crypto VC in Q4 This crypto VC dominance comes despite what industry leaders have described as a challenging regulatory environment under the outgoing administration. Ryan McMillin, co-founder and chief investment officer at Merkle Tree Capital, attributes the U.S.’s lead to its robust financial market and innovation sector. “There are simply more venture capitalists and limited partners in the U.S.,” McMillin said. He noted a 46% quarter-on-quarter surge in U.S. capital deployment, attributing this spike to the certainty of a pro-crypto Trump administration set to take office. A Pro-Crypto Administration Sparks Optimism With Donald Trump’s inauguration set for Jan. 20 , the crypto industry is optimistic about a shift in regulatory tone. Hundreds of pro-crypto candidates have also secured seats in Congress, signaling the potential for a more supportive legislative environment. McMillin expects this transition to ignite a surge in venture capital activity. “The move from a hostile administration to one that is pro-crypto will be like night to day,” McMillin remarked, referencing the previous administration’s regulatory crackdowns, including Operation Chokepoint 2.0, which targeted crypto firms. “Institutional adoption won’t just stop at Bitcoin and Ethereum. Allocators will explore the entire spectrum of digital assets, including mid-caps, small caps, and venture capital opportunities.” Galaxy’s report echoed McMillin’s optimism, noting that despite regulatory hurdles, U.S. companies continued to dominate the crypto VC landscape. The report also projected increased U.S. dominance under the incoming administration, particularly if key regulatory frameworks—such as stablecoin legislation and market structure policies—are finalized. The Securities and Exchange Commission (SEC), a key player in crypto regulation, reported $8.2 billion in financial remedies in its latest annual report, underscoring the challenges faced by the industry. However, the number of enforcement cases by the SEC dropped 26% from the previous year, hinting at a potential easing of regulatory pressures. The post U.S. Poised for Crypto VC Boom as Pro-Crypto Administration Steps In appeared first on TheCoinrise.com .
