Armstrong says American unclear crypto rule will end up benefiting US rivals

The Coinbase CEO noted that China-like countries may grab huge benefits against the US if US lawmakers will not bring a clear crypto regulation framework.

Coinbase is a top American-regulated crypto firm. This exchange publicly traded on the Nasdaq exchange under the “COIN” index. For the last couple of months, the Coinbase team has been forcing the United States Securities and Exchange Commission (SEC) to provide clarity on the agency’s crypto sector regulatory approach.

On 30 May 2023, Coinbase CEO Brian Armstrong shared his opinion in MarketWatch. Armstrong reflected the current US regulatory environment, which is not suitable for the crypto firms to operate a business in the company despite being registered with the corresponding regulatory bodies & following laws properly.

Armstrong said that Crypto 2022 was a very bad year for this innovative industry, as several crypto firms went bankrupt & Terra (Luna) crypto token collapsed badly. 

According to the Coinbase CEO, if the US regulators will consider these crypto assets as unstable assets on behalf of the Crypto 2022 incidents then they will fail to understand the very big picture of this innovative sector.

Furthermore, Armstrong said that the main use case of cryptocurrencies is to bring digital innovations in the payment system and if American regulators will not recognize the potential of crypto & blockchain then surely the US will lose its top position in the race of technology adoption.

In the last, Armstrong raised concerns over unclear crypto rules in the country. He said that regulators are taking strict action against crypto firms without any proper & clear rules. 

Armstrong said:

“By enforcing restrictive policies, the U.S. is inadvertently driving crypto-innovation offshore. That shift will compromise America’s legacy of pioneering technological advancements, and weaken our national security posture.”

According to Armstrong, if the US will not change its stance toward this sector then surely US rivals will grab huge benefits from this sector. 

In particular, he noted that America’s biggest rival China brought a very big challenge against the US dollar, with its Digital Yuan (or say e-CNY) launch. 

Read also: US CFTC warns crypto clearing service providers