The Urgent Need for U.S. Policymakers to Embrace Crypto
Coinbase CEO Brian Armstrong wrote in a recent opinion piece that American policymakers are failing to see the bigger picture in treating cryptocurrencies as a speculative or gambling tool instead of a financial technology foundation. The current crypto industry turbulence might make it tempting for regulators to write it off as an unstable asset class. However, failing to recognize that crypto is much more than individual transactions risks losing America’s innovation hub and global financial leadership.
The importance of crypto to American technology leadership and national security, as outlined in the op-ed piece, has been reinforced by other industry experts and high-ranking senators. The U.S. Securities and Exchange Commission (SEC), though, is still unwilling to acknowledge the need for crypto to have its own legislation. Armstrong highlights that by enforcing restrictive policies, the U.S. is driving crypto innovation offshore, which goes against the country’s interest.
Armstrong believes that democratic nations must challenge digital systems promoted by their ambitious opponent, China. Countries like China are promoting digital platforms, including CBDCs and are positioning themselves as global crypto hubs. Armstrong warns that China’s strategy to leverage financial technology to protect its national interest is a direct challenge to the U.S. dollar’s role, which they aim to replace. Other nations belonging to the European Union, the United Arab Emirates, Japan, Brazil, Singapore, and Australia are already racing ahead with the rollout of crypto regulations, and the U.S. risks falling behind.
The current financial system doesn’t meet the interests of most Americans, and surveys show that 70% of them think their children’s future is bleak. Rampant inflation and national debts are impacting all but the wealthy Americans, and the next generation will pay if nothing changes. Coinbase CEO claims that the SEC is putting up walls and denying appeals despite the firm requesting clarity on regulations and dialogues with regulators who threatened legal action back in March.