The cryptocurrency industry has largely moved operations offshore to avoid stringent U.S. regulations. Following the SEC's 2017 ‘DAO Report,’ which classified many tokens as securities, compliance challenges escalated, pushing firms to form overseas entities. These offshore structures offered tax advantages and circumvented U.S. securities law, allowing projects to engage in token sales without attracting regulatory scrutiny. Recent regulatory shifts, such as proposed crypto rulemaking by the SEC and favorable tax treatments for tokens, suggest a possible reopening of the U.S. market to crypto firms. Innovations like decentralized unincorporated nonprofit associations may also enable onshore operations as the regulatory environment evolves. With new leadership at the SEC and indications of a willingness to accommodate the industry, the landscape for U.S. crypto firms could transform, potentially leading to a re-shoring of operations.

Source 🔗