Launching a crypto project in the US remains fraught with challenges due to a hostile regulatory environment, driving founders offshore. The promise of a crypto-friendly administration under Trump has yet to yield real change, with vague regulations persisting. The SEC's outdated Howey test classifies many crypto tokens as securities, stifling innovation. This classification discourages liquidity providers and centralized exchanges from engaging with US-based projects, forcing American founders to seek legal clarity and token issuance abroad. Countries like Switzerland and the Cayman Islands have emerged as favored jurisdictions due to more favorable regulations. To reclaim its status as a crypto leader, the US must implement a new legal framework that recognizes the gradual decentralization of tokens, moving away from a purely enforcement-based approach. This includes establishing clearer guidelines for market makers to distinguish between commodities and securities. Without prompt action, the US risks losing its competitive edge in the burgeoning crypto space.

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