China will benefit the most from US crypto laws, according to Coinbase CEO
May 31, 2023 7:28 AM
The CEO of Coinbase has long claimed that the United States' refusal to offer regulatory clarity to the crypto industry will drive enterprises abroad.
According to Coinbase CEO Brian Armstrong, "adversary nations" such as China could gain from restrictive crypto regulations in the United States in the long run.
While recent volatility in cryptocurrency markets may entice U.S. authorities "to write it off as an unstable asset class," Armstrong reiterated his earlier warning in an op-ed published→ by MarketWatch on May 30.
Armstrong urged governments to recognize that cryptocurrency is "about much more than individual transactions," instead representing a "transformative technology" that has the potential to alter a wide range of industries. He cited its potential to pay royalties to creators for secondary market sales as an example, adding:
"Crypto, like the web before it, holds the potential to revolutionize finance and countless other industries, including supply chains to social media, by providing a quicker, less costly, more secure and easily available platform."
Armstrong, as a public person and the CEO of Coinbase, has long advocated for US lawmakers to provide the crypto industry with legislative clarity that would allow it to reach its full potential while protecting consumers.
Coinbase has also requested→ the Securities and Exchange Commission for clarification on which digital assets constitute as securities, arguing against the SEC's "regulation by enforcement" strategy. Gary Gensler, the chairman of the SEC, has previously claimed that digital assets are already subject to existing securities regulations.
Armstrong noted in the op-ed that it is expected that Hong Kong is establishing itself to be a global crypto hub as China looks to threaten the United States' place as the world's financial powerhouse in a variety of ways, such as the recent launch of the digital yuan.
Armstrong cautioned that if comprehensive crypto legislation is not passed, the United States will be forced to play catch-up and spend billions to bring development back to the country, but that even with a "colossal and sustained effort," it may be too late by then.