Coinbase CEO, Brian Armstrong, recently expressed his criticism towards US lawmakers and regulators for their approach to cryptocurrency and their lack of “regulatory clarity.” In an opinion article published on MarketWatch, Armstrong warned that the restrictive policies enforced by the US are inadvertently driving crypto innovation offshore, with countries like China benefiting from these policies.
Armstrong highlighted China’s own digital yuan, which has already processed over $14 billion worth of transactions as of October 2022. He emphasized that China aims to directly challenge the dominance of the US dollar in global commerce through the launch of its digital yuan. Additionally, financial service providers in China are expected to allow citizens to pay for wealth products using the digital yuan, further strengthening its position.
According to the Atlantic Council, eleven countries, including the Bahamas and Nigeria, have already launched their central bank digital currencies (CBDCs). This global trend indicates a growing acceptance and recognition of the potential benefits of digital currencies.
Meanwhile, Coinbase has shifted its focus towards Washington DC, engaging in a new TV campaign promoting cryptocurrency’s future. In a black-and-white commercial lasting almost two minutes, Armstrong stated that cryptocurrency is here to stay, regardless of public opinion. However, Coinbase is currently facing an ongoing feud with a US regulator, as it received a Wells notice in March regarding specific products. A Wells notice signifies that the US Securities and Exchange Commission (SEC) is prepared to recommend formal charges to its five-member commission.
Gary Gensler, the SEC Chair, has been advocating for exchanges to register, pointing out the potential conflicts that exist within the industry. Meanwhile, lawmakers in Washington DC are actively working on bills to regulate cryptocurrencies. The outcomes of these efforts remain uncertain, as it is yet to be seen which bills will ultimately come to fruition.
Brian Armstrong’s criticism of US lawmakers and regulators highlights the need for regulatory clarity in the cryptocurrency space. The restrictive policies enforced by the US are inadvertently pushing innovation offshore, allowing countries like China to capitalize on the opportunities presented by digital currencies. As Coinbase continues its campaign in Washington DC, the ongoing feud with a US regulator underscores the challenges faced by the cryptocurrency industry. The future regulatory landscape remains uncertain, as lawmakers work towards creating a comprehensive framework for cryptocurrencies
