Katherine Ross

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Crossover’s officially expanding to the United States.&nbsp;



I spoke to CEO Brandon Mulvihill about the move, institutional interest, and the rise of over-the-counter (OTC) trading.&nbsp;



It’s probably already pretty obvious that this change is happening because of the shifting environment in the United States. Mulvihill told me it’s the perfect time for the team to enter the US markets — because it’s obviously a more favorable regulatory environment, but also because it looks like institutional interest is really picking up.&nbsp;



“Almost the day after the election, the US institutions were calling us immediately,” he told me. Mulvihill and his other cofounders started their careers in TradFi, so they’re pretty familiar with both crypto and the more, well, traditional side of finance.&nbsp;



And, with CrossX — its electronic communications network — Crossover does stand out as over-the-counter (OTC) trading picks up in crypto.&nbsp;



“One of the big drivers we see internationally is that people are getting out of — especially the crypto-native market makers and…quant hedge fund — they&#8217;re moving away from the on-exchange world into OTC trading, which should not be surprising, because if we look at the foreign exchange market, the same thing happened,” he said. Crossover is also the “largest OTC destination cleared by Hidden Road.”



He noted that even banks, which Mulvihill expects to be one of the “slowest financial institutions to the market” are already making headway, with the JPMorgan <a href="https://www.bloomberg.com/news/articles/2025-06-17/jpmorgan-to-pilot-deposit-token-jpmd-on-coinbase-linked-public-blockchain?srnd=phx-crypto">announcement</a> about JPMD and stablecoin progress by the <a href="https://www.wsj.com/finance/banking/crypto-stablecoin-big-banks-a841059e?gaa_at=eafs&amp;gaa_n=ASWzDAhSMoPcmOmAKC-LFtF9vIAkvrsxT32tv3mKrYUR72SV9gSZBrgax_8_krstsXk%3D&amp;gaa_ts=6851c701&amp;gaa_sig=IHNDW_Km5xkDw3GBlDQ_9AXzhaafufpXBIoNHObggT2BXLuH_1mGRRUUdjMMz65KqL944JKxPRcn80kwkinL9w%3D%3D">likes of Bank of America</a>.



“They are all aggressively, from what we see, building out or finally finalizing battle plans,” he said, reiterating that he still thinks there’ll be a “little bit of time before [banks] come in.”



Add to that the regulatory changes on the horizon. Mulvihill told me that the Crossover team has offered comments on the market structure bill, which is still working its way through DC. He told me he’s heard that it could come between August to the end of the year, though he was cautious to actually predict a timeline.&nbsp;



But the bill itself “changes the game,” he said, calling it “the most positive thing that, I think, has happened in crypto since the ETFs were launched.”



“As a result, what we&#8217;re going to see are mainstream, blue-chip financial institutions coming in waves. I think we&#8217;re going to see M&amp;A explode. I think we&#8217;re going to see investment explode. I think you&#8217;re going to see a real explosion of new customers into the space as a result of this bill.”



And this just reiterates the market potential for Crossover.



“We just fundamentally don&#8217;t believe that the institutional market can grow orders of magnitude in its current market structure form,” Mulvihill noted. Instead, it’ll evolve from here. Just like crypto has pushed TradFi to evolve, which is perhaps why Crossover is striking while the iron is heating up and moving into the US.&nbsp;



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Empire Newsletter

Why Crossover is expanding into the US

Kate Irwin

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/thedrop" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Now that the US regulatory climate around crypto has shifted, some, like a16z’s Miles Jennings, have declared that crypto foundations like those set up in the Cayman Islands are no longer necessary and should be a thing of the past.



Jennings, who is the venture firm’s head of policy and general counsel, <a href="https://a16zcrypto.com/posts/article/end-foundation-era-crypto/">wrote</a> in a recent blog post that foundations became standard initially to increase decentralization. But over time, he argues, foundations’ lack of economic incentives, combined with existing legal and economic constraints, have made it difficult for the nonprofits to be productive or broadly financially successful.



“Most foundation setups require projects to spend upwards of $500,000 and several months working with an army of lawyers and accountants. This not only slows innovation, it’s cost prohibitive for small startups,” Jennings said.&nbsp;



“The situation has gotten so bad that it’s now increasingly difficult to even find attorneys with experience setting up foreign foundation structures, because many have given up their practices. Why? Because they now just collect fees as professional board members on dozens of crypto foundations,” he argued.



Jennings concluded that companies are just better. Foundations have turned into controlling entities, but could evolve into other formats like Decentralized Unincorporated Nonprofit Associations (DUNAs), while developer firms could become Public Benefit Corporations (PBCs).&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">I&#39;ve never been more optimistic about the chances of market structure legislation passing in the U.S. It&#39;s a great time to be building in crypto in America. <a href="https://t.co/ZO8HjVrErS">https://t.co/ZO8HjVrErS</a>&mdash; miles jennings (@milesjennings) <a href="https://twitter.com/milesjennings/status/1932883189443539059?ref_src=twsrc%5Etfw">June 11, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



How do other blockchain attorneys feel about crypto foundations, especially when they have historically been set up to address regulatory and taxation concerns?&nbsp;



&#8220;Foundations for token issuances are neither needed nor would they be particularly effective in instances where there was a concern whether or not the token constitutes a security,” David Otto, managing partner at Martin Davis PLLC who led defense in the <a href="https://www.sec.gov/files/litigation/litreleases/2025/stip26299.pdf">recently-dismissed</a> SEC lawsuit against DragonChain, told me in a message.



“There generally is no longer the perception that one needs to create a foundation (other than for specific jurisdictions that provide for tax benefits) in connection with a token issuance,” Otto added.



Moish Peltz, co-managing partner of Falcon, Rappaport &amp; Berkman&#8217;s <a href="https://frblaw.com/practices/digital-assets/">Digital Assets Group</a>, said that offshore foundations can still have a role in crypto, but “rationale is narrowing as US rules catch up.”



Peltz suggested that US teams should look into starting US-based UNAs or DUNAs instead — or set up an LLC as a for-profit option.&nbsp;



He advises to “only look offshore if (a) a significant share of contributors cannot participate under U.S. securities or tax laws, or (b) the project’s community is already truly global and wants a neutral flag. Even then, they should expect to satisfy disclosure, KYC, and board-independence standards they would face here.”



“The real barrier is the tax,” Peltz continued. “Token treasuries often appreciate before they are spent. If the IRS provides clearer deferral or charitable-like treatment for bona-fide decentralized or public-goods projects, many of the remaining reasons to go offshore will compress.”



Tyler Harttraft, a partner at Bull Blockchain Law, told me that crypto foundations remain essential for US teams launching tokens. He noted that the tax breaks are the main reason crypto has been drawn to Cayman Islands foundations in the past, and this will likely remain the preferred pathway until new US regulation is solidified.



“The current US regulatory landscape offers no clear issuance pathway: Although the SEC is exploring exemptive relief and Congress has proposed measures like the Clarity Act and the Digital Asset Market Structure draft, none have yet created a formal safe-harbor for new token launches. As a result, advising a crypto firm to establish a separate non-US foundation remains the only reliable option for legal and tax certainty,” Harttraft said.



Video streaming- and data storage-focused network Livepeer is one example of a crypto ecosystem that just launched a foundation earlier this month in the current climate.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Today is a big day in the <a href="https://twitter.com/Livepeer?ref_src=twsrc%5Etfw">@Livepeer</a> ecosystem, as we share the launch of the new Livepeer Foundation! 8 years ago, at the dawn of the project, we opted not to take the Foundation path, for many of the reasons that <a href="https://twitter.com/milesjennings?ref_src=twsrc%5Etfw">@milesjennings</a> from A16Z Crypto recently articulated in a… <a href="https://t.co/a99WApcJP3">https://t.co/a99WApcJP3</a>&mdash; Doug Petkanics (@petkanics) <a href="https://twitter.com/petkanics/status/1930642003156435232?ref_src=twsrc%5Etfw">June 5, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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“We’re creating something leaner, more focused, and better suited to the actual needs of a mature, multi-entity, decentralized network,” Livepeer cofounder and CEO Doug Petkanics told me in a message. “Many foundations have become bloated intermediaries that exist as a regulatory workaround, and neither accelerate decentralization nor improve execution.”



The current political climate suggests foundations may not be needed for much longer, which would be a drastic change from the status quo of the past decade.&nbsp;



While some foundations serve more of a purpose than others, setting up something leaner or doing away with the model entirely would increase competition and aid scrappy startup builders in the US looking to bring tokenization to their consumer apps. Progress!



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International

Do crypto teams still need offshore foundations?

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



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The crypto boom isn’t just boosting interest in the US — it’s boosting interest across the world.&nbsp;



Gemini’s <a href="https://www.gemini.com/blog/introducing-the-2025-global-state-of-crypto-report">State of Crypto Report </a>found in a survey that Singapore has the highest ownership rate at 28%, a 2% increase from last year. Meanwhile, the UK jumped to 24% from 18%.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfxv2VQ625o8XlVfySP4OKHmk-iyrHcZNRgwDgcsUeamR9jtVvpDKPsNekgefKAf7xtKU51HHU6H4cz-6rPIrfoiYfcIu6VwzEiEmSWCLKbOrS-8qf48ZuY5o2QISTfxpcjjk2z2g?key=TYYZLjQ4yNoAz4KPY-S4Qw" alt=""/><figcaption class="wp-element-caption">Source: Gemini</figcaption></figure>



It’s obviously hard to deny the impact of the US opening up, and that was cited as a big reason for folks across the world who are crypto-curious but not ready to commit to owning any (yet).&nbsp;



“Nearly a quarter (23%) of non-crypto owners in the US said the launch of Strategic Bitcoin Reserve makes them more confident in the value of cryptocurrency. This sentiment was echoed by respondents in the UK and Singapore, where about one in five (21% and 19%, respectively) non-owners said they were more confident due to President Trump’s Strategic Bitcoin Reserve,” the report said.&nbsp;



But what I found to be the most interesting nugget was actually about memecoins. Before you roll your eyes, hear me out.&nbsp;



France is the leader for memecoin adoption so far this year. A whopping 67% of French crypto investors own memecoins, which is pretty firmly above the 59% of Singapore investors and 58% of Italians that own memecoins.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXchlyh7HK3xPnkFgV7tCb6jejr__VuqA0hAGjkwdyyhcyBf6Cvnj_hz64SIM6ZHqRDz8XzLy1DjZolYVcm95fChsq6tutNrgN_qV7YvuB1Q-UymiM1Sq6OH0v4f2QEqht23-zFn?key=TYYZLjQ4yNoAz4KPY-S4Qw" alt=""/></figure>



The survey also found that memecoins seem to be working as an onramp for investors, with 94% of folks surveyed reporting that they own both memecoins and other crypto.&nbsp;



“In the US, 31% of investors who own both memecoins and traditional cryptocurrencies report that they purchased their memecoins first, followed by 28% in Australia and the UK, 23% in Singapore, 22% in Italy, and 19% in France,” the report said.



But for the more buttoned-up investors, ETFs have helped act as an onramp. In the US specifically, Gemini found that two in five US investors surveyed own crypto ETFs. The products have also seen a jump over in Italy, United Kingdom, Australia and Singapore.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf4zYGergdhuuojVnbmuI7hK0GiUAH_zDP4xrBGHmEUa0bXSXOzgr_J90KP3PIaV4tF_u9h7dDaDZMobr_SSLVyR8IDM4TtB5JDsMPNYTZ6zxM6ecxCtTzhy-fNzebA08mGqEiKWA?key=TYYZLjQ4yNoAz4KPY-S4Qw" alt=""/></figure>



I always caveat these types of reports by cautioning that they’re giving a glimpse into survey results, which means we may not be seeing the full picture for a lot of the momentum we’ve seen.&nbsp;



However, there’s no denying that the results give us an interesting snapshot of the appetite for crypto at this point.&nbsp;



It’s also nice to see how global adoption continues, something we’ve been touching on but haven’t had a chance to delve into. Admittedly, right now it’s pretty easy to get lost in the US narratives as they continue to dominate.&nbsp;



One thing’s for sure, though: Love ‘em or hate ‘em, memecoins have managed to stick, not only as a way to onboard folks but as a way to allow investors to diversify their crypto holdings if they’re feeling, well, adventurous.&nbsp;&nbsp;



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