Interviews of crypto firms conducted by The Block shows – perhaps unsurprisingly – that regulatory uncertainty in the U.S. remains the top barrier for companies working in the crypto and digital asset space.
Ninety-one percent of companies interviewed as part of The Block Genesis's Digital Asset Human Capital Trends Report, commissioned by the Blockchain Association, cited "regulatory uncertainty" as a barrier.
“Everybody heard that term, which is regulation by enforcement and that's a real fear and that’s hard to rely on and set up businesses," Michelle Bond, global head of government and regulatory affairs for Ripple, told The Block.
Costs and unclear tax laws were cited by 43% and 9% of participants, respectively. Crypto executives canvassed highlighted the cost of regulatory compliance when reached during the interview process.
"We've just had to spend an unreasonable amount of money on legal counsel and fees for our lawyers, which I mean, we've fortunately been in a position to do because we've been very well funded, but certainly it’s not the case for very many early stage projects," MacLane Wilkison, co-founder & CEO of NuCypher, told The Block.
Unsurprisingly, the vast majority of companies said they wanted to see more clarity on the regulation front.
"Regulatory clarity and reduced fragmentation would create a friendlier environment for crypto companies in the U.S," said Jasmine Shergill, director of regulatory affairs (USA) for eToro.
For more insights into the state of employment and business sentiment across the industry, check out the Digital Asset Human Capital Trends Report.