The US is far from losing the venture crown

Coinbase is open to leave the United States after a regulatory dispute with the government. A shift in tone of that magnitude could affect where the future of technology is built and the opportunities of the global venture market ahead.

The Coinbase news does not exist in a vacuum. Several US government agencies are taking a more aggressive stance on cryptocurrencies and digital assets and securities in general – evidenced by a flurry of recent action – as concerns that developers are headed for the border are gathering steam. The US could lose some of its prominence in the crypto market over time if trends continue.

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But not so fast: Crypto can be an outlier (more on this later), and even then, we should strongly caution against the idea that the United States is in real danger of losing its place as the leading location for building tech companies.

Don’t take our word for it. Instead, we can learn a lot from venture capital investing itself. Since VCs are expected to be expert investors with a finger on the pulse of what’s next, where they bet should be a good indication of where there are hotspots of innovation and optimism.

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