As regulatory certainty becomes the decisive competitive advantage, in the race to become crypto’s Wall Street, are the early frontrunners losing ground?
For more than a decade, crypto innovation has been shaped by regulatory uncertainty. Companies set up shop in ‘friendlier’ jurisdictions, often more out of necessity than choice. Meanwhile, the US, home to the world’s deepest capital markets and most dynamic
venture ecosystem, kept the industry at arm’s length.
That reality shifted decisively in July 2025. While the law hasn’t yet gone into effect, the passing of the GENIUS Act has triggered a direct market response. The
global crypto market cap surged past $4 trillion in the weeks following passage, reflecting newfound investor confidence. The message is clear: regulatory certainty is now one of the most powerful catalysts for growth, and a key factor in which jurisdictions
will remain relevant.
The stakes: early movers are facing disruption
The US brings three formidable assets to the table: its investment and capital ecosystem, political commitment to economic competitiveness, and role as the global financial centre. Combined, these elements create incentives that no other jurisdiction can
currently match.
Companies previously forced into ‘regulatory exile’
now see a path back home. New entrants looking for access to capital are weighing the advantages of a US base. The gravitational pull is undeniable, and it poses a direct challenge to early movers in Europe, the Middle East, and Asia.
The lesson for everyone else is clear: no jurisdiction can afford to be complacent. Switzerland was an early mover in this space, Abu Dhabi an early innovator, Hong Kong a gateway to the Asian markets, and the Markets in Crypto Asset Regulation (MiCA) went
into effect in the European Union earlier this year. But now that the US is finally showing up and setting the rules, early-mover advantages are evaporating. Jurisdictions must evolve or risk irrelevance.
Political support accelerates market capture
The regulatory clarity arrived under an explicitly ‘America first’ economic policy agenda. From semiconductors to AI to clean energy, the US has been working to pull entire industries back within its orbit. Digital assets are next on the list.
Political support doesn’t just provide legal clarity; it sends a message of legitimacy to markets. Even as administrations change, the progress made will most likely not be reversed as lawmakers are more comfortable with the asset class. When policymakers back
a sector, capital follows. Other jurisdictions may offer agility or innovation but replicating the political significance of Washington will be challenging when it actively supports crypto finance.
The competitive landscape: sustainability under pressure
Today's competitive map stretches well beyond Washington, but each hub faces the same question: is it sustainable against the US’ momentum?
Switzerland earned credibility as Europe’s ‘Crypto Valley’, capturing
29% of Europe’s total blockchain investment in 2024. Crypto Valley is now home to 1,749 crypto companies (+132% since 2020) – including AMINA Bank AG. But Switzerland’s challenge is clear: early adoption alone cannot shield US momentum.
The UAE pursued a dual strategy: Dubai as a retail innovator, and Abu Dhabi as an institutional anchor. Dubai’s Virtual Assets Regulatory Authority, launched in 2022, became the first global regulator dedicated to digital assets, licensing
service providers such as Circle, Binance, and OKX. Abu Dhabi's comprehensive framework, introduced as early as 2018, attracts institutional players such as Standard Chartered-backed Zodia Markets and GFO-X to
operate a regulated derivatives platform. The combination of retail innovation and institutional credibility underscores why the Emirates remains one of the most innovative jurisdictions globally.
Hong Kong emphasises its role as Asia’s connective gateway, linking Chinese capital to global markets, most recently though its stablecoin regime and Digital Asset Policy Statement 2.0. That positioning provides strategic weight, though
it must prove its frameworks are robust enough to compete with the likes of Singapore and win lasting institutional trust.
The European Union created a united framework to govern crypto across 30 countries. MiCA through its “one license, multiple markets” approach, offers scale for firms looking to operate across Europe’s diverse economies. MiCA’s scope is comprehensive,
covering everything from stablecoins to trading platforms. The wide reach of this framework makes it a serious contender compared to other fragmented national approaches.
Each hub demonstrates how jurisdictional competition shapes outcomes. However, now America is reasserting itself with scale and political backing.
Diversification as an imperative
Despite the move towards clarity in the US, the future will not be wholly US-centric. The industry's strength lies in its multi-jurisdictional nature. Swiss banking stability, UAE’s regulatory innovation, Hong Kong’s connectivity, and Washington’s capital
markets all reinforce the other.
The strategic lesson is diversification. Companies building multi-jurisdictional frameworks hedge risk while creating resilience. A Swiss license carries more weight when US investors demand it. ADGM approval gains credibility when paired with a US foothold.
Jurisdictions validate one another, and successful firms position themselves at these intersections.
A competitive catalyst, not a zero-sum game
The GENIUS act gives the US renewed leverage, but this is no zero-sum game. Jurisdictional competition forces higher standards, accelerates innovation, and broadens adoption globally.
Now, the race to build crypto’s next Wall Street has begun in earnest. It will be interesting to see which jurisdiction will emerge as the winner, or whether this competition will create something far better: a financial system that is more resilient, efficient,
and globally distributed than a single hub can achieve.