31 May 2023 Josphat Kariuki
Coinbase CEO Warns About China Benefiting From Restrictive US Crypto Regulations
According to Brian Armstrong, CEO of Coinbase, "adversary nations" like China may ultimately profit from the United States' stringent crypto regulations.
Armstrong once more cautioned that recent volatility in the cryptocurrency markets would entice American authorities to "write it off as an unstable asset class," but that doing so could result in the U.S. losing its position as a global financial leader and innovation engine.
Armstrong advised decision-makers to recognize that cryptocurrencies are "about much more than just individual transactions," but rather a "transformative technology" that has the potential to transform numerous industries. He gave the example of its capacity to pay royalties to creators for secondary market trades.
“Crypto, like the internet before it, has the potential to modernize finance and numerous other sectors, from supply chains to social media, by offering a faster, cheaper, more private, and accessible platform,” Armstrong added.
Armstrong has long advocated for U.S. lawmakers to give the cryptocurrency industry the regulatory certainty it needs to realize its promise while safeguarding consumers through his position as a public figure and as the CEO of Coinbase.
In addition, Coinbase has argued against the U.S. Securities and Exchange Commission's "regulation by enforcement" strategy and requested clarification from the government regarding which digital assets count as securities. Digital assets already fall under the existing securities laws, according to SEC Chair Gary Gensler.
In the op-ed, Armstrong said it was not surprising that Hong Kong is establishing itself as a hub for cryptocurrency because China is attempting to unseat the United States as the world's financial leader in a number of ways, including the introduction of the digital yuan.
Armstrong cautioned that the United States would have to play catch-up and spend billions to attract innovation back to the country if comprehensive crypto legislation was not passed, but he also observed that even with a "colossal and sustained effort," it might be too late by then.Cryptocurrency Regulations Coinbase china cryptocurrency news crypto news Regulations