Coinbase CEO Brian Armstrong has been a long-standing critic of the U.S’s failure to provide the crypto industry with regulatory clarity. In a recent op-ed for MarketWatch, Armstrong warned that restrictive crypto policies in the United States could prove to be beneficial for “adversary nations” such as China. He argues that although recent crypto market turbulence might tempt U.S policymakers to dismiss the asset class as unstable, doing so could lead to the U.S losing its foothold as a financial leader and innovation hub.
Instead, Armstrong urges policymakers to recognize crypto’s transformative potential, which extends beyond individual transactions. He cites its ability to revolutionize a plethora of sectors, including supply chains and social media, by offering a faster, cheaper, more private, and accessible platform. Armstrong has continually called for U.S policymakers to provide the crypto industry with regulatory clarity, which would help realize its potential while also protecting consumers.
One significant area of concern for Armstrong is the U.S. Securities and Exchange Commission’s approach to which digital assets qualify as securities. Coinbase has repeatedly sought clarity on this issue, arguing against the “regulation by enforcement” method employed by the SEC.
Armstrong highlights that it is no surprise Hong Kong is positioning itself as a global crypto hub, as China aims to challenge the U.S’s role as the global financial leader through initiatives such as the digital yuan and the Belt and Road. He contends that if comprehensive crypto legislation is not passed in the U.S, it could result in the need to play catch-up later on, which would cost billions of dollars and potentially be too late even with a concerted effort.
As it stands, the challenge for the United States is striking the right balance between encouraging the growth of a market-transforming technology and protecting its citizens and economy from potential risks. By ignoring the evolution of the crypto market, the U.S may inadvertently pave the way for other nations to take the lead in shaping the future of not just cryptocurrency, but the entire financial landscape.
Source: Cointelegraph
