• Coinbase CEO Brian Armstrong warned that China could dominate the global digital finance sector if U.S. regulators continue to strangle the crypto and fintech industry.
• In an opinion piece on May 30, Armstrong argued that failing to recognize the potential of crypto beyond individual transactions puts America at risk of forfeiting its role as a global financial leader and innovation hub.
• He urged policymakers to see the big picture with crypto, emphasizing that it is important for American technology leadership and national security that this industry be built in America.
Crypto Dominance Threat
Coinbase CEO Brian Armstrong recently spoke out about the threat of China benefitting from a growing dominance in the crypto and fintech sector as America continues to strangle the industry. In an opinion piece on May 30, he warned that recent turbulence „might make it tempting for policymakers to write it off as an unstable asset class.“
U.S. Regulatory Stranglehold
Armstrong argued that U.S. regulators have been treating crypto as a speculative or gambling tool rather than a financial technology foundation, missing out on recognizing its true potential beyond individual transactions – which puts America at risk of forfeiting its role as a global financial leader and innovation hub. He urged policymakers to see the big picture with crypto, stressing that it is important for American technology leadership and national security that this industry be built in America.
The Crypto Industry Response
Armstrong’s message has been reiterated by several industry executives and even high-ranking senators – however, so far his pleas have fallen on deaf ears with the Securities and Exchange Commission (SEC) refusing to acknowledge that this new asset class needs its own legislation. He believes this is inadvertently driving crypto-innovation offshore due to restrictive policies enforced in the U.S., making it less attractive for innovators compared to other countries such as China who are taking advantage of opportunities presented by digital assets like cryptocurrency.
China’s Growing Influence
China has long been ahead of many other nations when it comes to embracing blockchain techonology; They are now one of world’s leading markets for cryptocurrency trading activities despite their ban on initial coin offerings (ICOs). This gives them access to an ever-growing portfolio of technology startups while simultaneously providing investors with lucrative opportunities – something which US regulators are preventing their citizens from taking part in by imposing strict regulations which scare away investors or stifle development completely . As such, there is no doubt Beijing will benefit from the growth of digital assets while Washington remains stuck in old ways regarding their approach towards cryptocurrencies – something Armstrong does not want happening without consequence if possible..
Time For Change?
It seems clear then, based upon what we know about Chinese progress within digital finance sectors compared with what’s going on in America right now, there needs to be some kind of policy change at least from Washington DC’s perspective before they can even begin competing against Beijing who already have huge amounts invested into blockchain projects across multiple industries already – something US lawmakers seem unwilling or unable do anything about currently..