Coinbase CEO Brian Armstrong has warned that "hostile countries" like China could end up benefiting from restrictive US cryptocurrency policies.
In a May 30 MarketWatch op-ed, Armstrong again warned that while the recent turmoil in the crypto market may tempt US policymakers to "view it as a volatile asset class," doing so could make the US abandon Its status as a financial leader, innovation hub. Armstrong urged policymakers to see that cryptocurrencies are "more than just individual transactions," but represent a "transformative technology" that could revolutionize multiple industries. He highlighted its ability to provide creators with royalties for se condary market transactions, adding: "Cryptocurrency , like the internet before it, has the potential to modernize finance and many other sectors, from supply chains to social media, by providing platforms that are faster, cheaper, more private and accessible."
Through his roles as a public figure and head of Coinbase, Armstrong has long pushed US policymakers to provide regulatory clarity to the crypto industry to help realize its potential while protecting consumers. Coinbase also asked the SEC to clarify which digital assets qualify as securities, objecting to the agency's "enforcement oversight" approach. SEC Chairman Gary Gensler has previously argued that digital assets are already subject to existing securities regulations. In the op-ed, Armstrong added that as China looks to challenge the United States' role as a gl obal financial leader in various ways, such as the recently launched digital yuan.
Armstrong warned that failure to pass comprehensive encryption legislation would result in the US needing to play catch-up and spend billions to bring innovation back to the US, but noted that even with a "tremendous and sustained effort," it may be too late then .
