China will benefit most from US crypto regulations that restrict China: Coinbase CEO

China will benefit most from US crypto regulations that restrict China: Coinbase CEO

The CEO of Coinbase has long been critical of the U.S. for failing to provide regulatory clarity in the crypto industry and has argued that it would push firms overseas.

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Brian Armstrong, CEO of Coinbase, warned that “adversary nations” such as China could benefit in the end from restrictive crypto policy in the United States.

Armstrong again warned in a MarketWatch op-ed on May 30, that recent volatility in crypto markets could tempt U.S. Policymakers to “write it off as an unsteady asset class.” Doing so would see the U.S. lose its status as financial leaders and innovation hubs.

Armstrong called on policymakers to recognize that crypto was “about much more” than just individual transactions, and that it is a “transformative techniqe” that has the potential to revolutionize many sectors. He cited as an example its ability to pay royalties on secondary market transactions.

Crypto, just like the Internet before it, can modernize many other sectors from supply chains to the social media. It offers a platform that is faster, cheaper, privater, and more accessible.

Armstrong, as a public personality and the head of Coinbase has pushed for U.S. policymakers in the past to give the crypto industry the regulatory clarity it needs to realize its full potential while protecting the consumer.

Coinbase also requested clarification from the U.S. Securities and Exchange Commission about which digital assets are securities. The company argued against the agency’s “regulation through enforcement” strategy. SEC Chair Gary Gensler argued previously that digital assets already fall under existing security regulations.

Related: SEC settles Case against Wahi Brothers for Coinbase Insider Trading

Armstrong said in the op-ed that it is not surprising that Hong Kong wants to become a global crypto hub, as China looks at challenging the U.S. as the financial leader of the world through a variety ways, including the launch of the digital currency.

Armstrong warned that if the U.S. did not pass comprehensive crypto legislation, it would be forced to spend billions of dollars to catch up and bring innovation to the U.S. He also noted that it may already be too late even if a “colossal effort” is made.

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