US Dominates Crypto Venture Capital Funding In Q4 2024

According to Cointelegraph, nearly half of all venture capital funding in the fourth quarter of 2024 was directed towards cryptocurrency startups based in the United States. This trend is expected to continue with the anticipated arrival of a pro-crypto administration. Galaxy Digital's research division released a report on January 15, revealing that 46% of the capital invested was allocated to US-based startups, significantly outpacing Hong Kong, which secured 16% of the funding. The United States also led in the number of venture capital deals, accounting for 36% of all transactions, followed by Singapore with 9% and the United Kingdom with 8%. Ryan McMillin, co-founder and chief investment officer of Australian crypto investment manager Merkle Tree Capital, explained that the US financial market and innovation sector are at the forefront globally, despite previous administrative challenges. He noted that the certainty of a Trump administration taking office contributed to a 46% quarter-on-quarter increase in capital deployment. With Trump's inauguration scheduled for January 20, there is optimism that he will fulfill his crypto-friendly campaign promises. Additionally, numerous pro-crypto candidates have secured seats in Congress, leading industry leaders to suggest that the US government could become the most supportive of cryptocurrency in history. McMillin anticipates a surge in crypto venture capitalist activity this year, driven by the potential for a more favorable regulatory environment. Galaxy Digital's Head of Research, Alex Thorn, and research analyst Gabe Parker highlighted in their Q4 report that despite a challenging regulatory landscape, US companies maintained their dominance. They expect this trend to strengthen with the new administration and Congress, which are poised to be the most pro-crypto in history. The solidification of regulatory frameworks, such as those for stablecoins and market structure legislation, could enable traditional US financial services firms to enter the crypto space more robustly. The Securities and Exchange Commission (SEC) has been involved in numerous lawsuits against crypto firms, with its annual report on November 22 indicating $8.2 billion in financial remedies for the year ending September 30. However, the number of cases decreased by 26% from the previous year, totaling 583.