According to a research report by CryptoQuant, United States-based crypto exchanges have seen a decline in their bitcoin and ether reserves, falling below 50%. This is due to an ongoing regulatory crackdown in the country, which has prompted international exchanges to gain traction.

The declining crypto reserves may indicate that users are withdrawing their holdings from exchanges due to security concerns or to hold their funds in private wallets.

The US federal government and regulators have been making the operation of US-based crypto businesses more difficult, leading some exchanges to cease operations in the US and others to announce new platforms that will operate outside the country.