Silicon Valley may be losing interest in crypto.

Silicon Valley ranked second among U.S. hubs in blockchain’s Crypto Hubs 2023. However, the poor crypto regulatory score, which was the most heavily weighted criteria at 35%, affected all U.S. hubs. The high cost of living in Silicon Valley also resulted in a lower quality of life score. Nonetheless, the area had advantages in terms of digital infrastructure and ease of doing business. Silicon Valley had been home to successful tech companies such as Google, Apple, and Facebook, and also to some crypto startups including CipherTrace and MakerDAO. The concentration of top tech talent and venture capital made it a promising environment for the crypto industry. However, competition from other emergent tech sectors like artificial intelligence and the recent SEC offensive against crypto created challenges for the industry. Expensive housing prices in Silicon Valley also prompted some firms to consider leaving the U.S. for friendlier regulatory regimes. Nonetheless, Silicon Valley remains a hub for tech ideas, money, and workforce, and a source for good talent.