Coinbase CEO Brian Armstrong has stated China will be one of the biggest beneficiaries of how the U.S. is approaching cryptocurrency regulation. According to Armstrong, the current regulatory system drives cryptocurrency innovation offshore, while other countries like China embrace these technologies. Future generations will have to pay for these decisions, Armstrong believes.
Coinbase CEO Brian Armstrong Criticizes U.S. Stance on Crypto; States China Might Benefit
Brian Armstrong, CEO of Coinbase, one of the largest U.S.-based exchanges, has criticized the policies of U.S. regulators regarding cryptocurrencies, detailing the counterproductive effects that they might bring. In a recent op-ed article, Armstrong explains that while companies have repeatedly asked regulators to offer clarity regarding crypto, they have decided to regulate via enforcement instead.
According to Armstrong, this stance on crypto is currently driving innovation offshore, isolating the U.S. from retaining its technological leadership when it comes to developing financial systems deeply intertwined with the identity and “democratic values” of America.
Countries like the U.K., United Arab Emirates, Brazil, Japan, the European Union, Australia, and Singapore, are currently drafting regulations to become cryptocurrency hubs and attract companies. However, to Armstrong, China will be one of the countries to benefit most from this anti-crypto policy.
The Chinese Communist Party is promoting these powerful, rapidly scaling platforms worldwide through its Belt and Road Initiatives, with its social credit system baked in. And with the recent launch of its digital yuan, China aims to directly challenge the U.S. dollar and its role in global commerce.
Repatriating Crypto Will Be Costly
Armstrong remarked on the importance of retaining cryptocurrency innovation capital in the U.S. by passing comprehensive and protective regulations designed to entice adoption and development. He declared:
Now is the time for Congress to seize the historic opportunity presented by crypto, and pass comprehensive legislation that safeguards consumers and fosters innovation.
“Crypto has the potential to play a significant part in stimulating the American economy and promoting democratic values worldwide,” he explained.
Concluding, Armstrong stated that if this continues, the next generation of Americans will pay the price of repatriating the crypto industry in the same way as the semiconductor and infrastructure industries.
The firm disclosed it had received a Wells notice sent by the U.S. Securities and Exchanges Commission (SEC) on April 27, criticizing this action and stating that the SEC could have stopped the firm from going public in April 2021. At the same time, the exchange started legal actions against the SEC for lack of clarity in regulations..
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