The ongoing debate over cryptocurrency regulations in the U.S. continues to spark concerns among industry leaders about the future of innovation and entrepreneurship.

With unclear guidelines pushing talent and companies overseas, many worry about the broader implications for both the crypto sector and the U.S. economy.

Roundtable anchor Rob Nelson led the discussion, joined by Wendy O, host of CryptoWendyO, and John Divine, head of OTC trading at BlockFills.

Wendy O expressed concerns, stating, "We used to be this really cool place where people could come and become entrepreneurs... now people are starting to get pushed overseas." She also shared her own challenges with the U.S. regulatory environment, adding, "I've already had to think about potentially moving overseas... because there's no legal clarity in the U.S."

John Divine added to the conversation by highlighting a different issue, stating, "Sure, entrepreneurs can move overseas... but the United States consumer, is the largest capital market in the world." He warned that regulatory fear might also affect consumers, which "could seriously impact the momentum of these products."

Mario Draghi, the former head of the European Central Bank, recently wrote up a report that issued a similar warning to the EU, which has struggled through a staggering rise of red tape that he says is impacting the region's tech sector.

“Regulatory barriers to scaling up are particularly onerous in the tech sector, especially for young companies," he said, noting that on a per capita basis, real disposable income has grown almost twice as much in the U.S. as in the EU since 2000.

"In fact, there is no EU company with a market capitalisation over EUR 100 billion that has been set up from scratch in the last fifty years, while all six U.S. companies with a valuation above EUR 1 trillion have been created in this period. This lack of dynamism is self-fulfilling," Draghi wrote.

Many are beginning to worry that if crypto is here to stay, then the U.S. may be falling behind if regulatory clarity isn't soon provided.