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Kraken may well follow and stop trading EOS as well, to be on the safe side. This may become quite a problem for the existing investors ehh donators, or in fact the entire project.

Is there an alternative then for US based crypto investors?

There still is EOS at Kraken, but I don't think there is in time. US based people weren't allowed to buy in the ICO. And pretty soon they aren't allowed to even trade the ERC20 tokens, not by the regular exchanges anyway by the looks of it. Maybe a decentralized exchange could be the solution, like the DEX.