Brian Armstrong, CEO of America’s largest exchange Coinbase, is concerned about crypto and blockchain technology moving offshore as the regulatory atmosphere in the U.S. breeds toxicity for the nascent industry.
Armstrong raises concerns of the crypto industry moving abroad to thrive
Brian Armstrong raised these concerns through his Twitter handle on Tuesday. The 39-year-old business executive highlighted the discouraging approach the United States has employed in its attempt to oversee the crypto industry.
One of the strongest policy arguments for cryptocurrency is that it’s a national security issue. The US missed on semiconductors and 5g which is now largely manufactured offshore. It can’t afford to have cryptocurrency go offshore as well. (same for every country btw)
— Brian Armstrong (@brian_armstrong) September 20, 2022
Armstrong further pointed out that the U.S. has in the past missed its chance to become a global leader in certain emerging technologies. According to Armstrong, some of these technologies include 5G and semiconductors. He noted that these technologies found a home abroad where the atmosphere fosters their growth.
Taking these into consideration, Armstrong stated that the U.S. should not allow crypto tech to move “offshore” as well. Notwithstanding, he noted that every country should also make sure their regulatory approaches do not force the industry abroad.
Regulation by enforcement has a terrible chilling effect, and rhetoric matters – we’ve already seen a huge amount of crypto talent, asset issuers, and startups go offshore,
he added in another tweet.
White House recently unveiled a crypto regulatory approach
Conclusively, Armstrong pointed out the importance of crypto to the U.S., and how his firm Coinbase will make sure the industry thrives locally. In general, the crypto community in the U.S. has persistently called for a reasonable regulatory framework for the industry.
As a response to these calls and a patent surge in adoption, the White House recently released a fact sheet on crypto regulation. The fact sheet detailed the provisions of nine reports on the oversight of the digital asset industry. Nonetheless, industry players have condemned the regulatory approach, citing its numerous flaws.
Kristin Smith, Executive Director of the Blockchain Association, criticized the Biden Administration for the approach. Smith called the recently-enacted strategy “a missed opportunity to cement U.S. crypto leadership.”
Additionally, U.S. Rep. Patrick McHenry condemned the reports. “Reports are not a substitute for regulatory clarity,” McHenry remarked. Furthermore, he highlighted the strategy’s focus on potential crypto risks rather than the opportunities they bring.
The fact that Brian Armstrong raises these concerns following the White House reports underlines the average American crypto proponent’s dissatisfaction.
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