US Loses Crypto Market Share in Q1 2023 Amid US SEC-led Crackdown: Report
The US crypto market continues to lose its global dominance amid the battle for regulatory clarity with regulators, including the US Securities and Exchange Commission (SEC). According to the latest crypto exchange report from crypto research firm TokenInsight, the US-licensed crypto exchanges lost market share in 2023 Q1, with Coinbase accounting for 1.31%, Kraken 0.60% and Binance.US 0.37%.
Consequences of SEC Action on US Crypto Exchanges
According to the Crypto Exchange Report 2023 Q1, the top 15 exchanges recorded a total volume of $10.8 trillion, a 40% increase compared to 2022 Q4. The crypto market recovered this year, with the Bitcoin price surging over 70%.
Binance, OKX, Bybit, Bitget, MEXC, Gate, KuCoin, Upbit, Coinbase and Huobi were the top 10 crypto exchanges in terms of trading volume. US-based crypto exchanges Coinbase, Kraken and Binance.US lost major market share in 2023 Q1.
Earlier, Coingecko also reported a continuous decline in trading volume on Coinbase from 7% in January to 5% in March. Meanwhile, trading volume on crypto exchanges outside the US is increasing due to the regulatory crackdown on crypto in the US. The US House Financial Services Committee is currently investigating potential Operation Choke Point-type actions by agencies such as the Fed, FDIC, and OCC to de-bank the crypto market.
Crypto spot trading volume jumped 18.1% to $2.8 trillion in Q1, with DEXs outpacing CEXs due to increased scrutiny of centralized exchanges following the collapse of FTX. Interestingly, crypto exchanges in the US such as Coinbase have failed to capitalize on the FTX fallout, with trading volumes actually falling.
Also read: BTC Price Decline Signal “Overheated Bull Phase” Ahead of Bitcoin Halving
US crypto firms moving offshore
Crypto companies including Coinbase and Kraken previously hinted at the possibility of moving offshore due to a lack of regulatory clarity. Coinbase and Kraken are fighting the US SEC’s misguided regulatory enforcement in the US.
Circle CEO Jeremy Allaire blames the US crypto crash for the USDC’s loss of market share. He said investors are pushing to “de-risk the US” amid regulatory uncertainty and the banking crisis.
Also Read: Crypto Market Support For $4.6 Billion Bitcoin And Ethereum Alternatives Expires
