In an op-ed published this Wednesday (1st) on CNBC, Brian Armstrong laments the lack of regulatory clarity regarding cryptocurrencies. According to Coinbase’s CEO, the US would miss a great opportunity by sending innovation abroad.
By comparison, Armstrong cited the semiconductor industry. Although your country was a leader in this sector at birth, countries such as Taiwan and China adopted the production of these chips, resulting in several negative consequences.
Therefore, the CEO of Coinbase states that the same can happen with cryptocurrencies. After all, the US will only become leaders in, for example, the mining sector if China decides to ban the activity on its territory.
Coinbase CEO calls for regulatory clarity on cryptocurrencies and says it could help the US
Citing opportunities such as job creation, Brian Armstrong criticized the position of US regulators. According to the entrepreneur “No other country in the world has spent so much time and energy trying to convince its citizens that crypto assets are securities”a direct criticism of the SEC.
As a counterpoint, he claims that cryptocurrency companies are looking for friendlier countries for their business.
“The US government should take a more proactive approach to cryptocurrencies and provide a clear regulatory framework for the industry, with forward-looking policies that recognize the many unique and innovative aspects of blockchain technologies.”
Armstrong’s speech comes just weeks after Changpeng Zhao, his biggest rival, advised crypto projects to leave the US. Therefore, we are looking at a geopolitical tug-of-war between the two largest cryptocurrency exchanges in the world.
Brian Armstrong wants the US government to create its own cryptocurrency
At another point in his text, Brian Armstrong also argues that the US should create its own cryptocurrency, i.e. a digital dollar. According to data from sites such as CoinMarketCap and CoinGecko, stablecoins today have a trading volume greater than that of Bitcoin itself.
“The dollar has been the world’s global reserve currency for decades, but has never been below it so much pressure.”
“Imagine a world where the US issues its own USD stablecoin on the blockchain”Brian Armstrong continued in his text. “Not only would this allow millions of people who previously had no bank account to access the dollar, it would also be the digital currency for cross-border money transfers and remittances, keeping the dollar the global reserve currency, on- and off-chain.”
Finally, Coinbase’s CEO really wants the government to see cryptocurrencies as a resource and not competition. Regardless, the Fed is still coy about creating its CBDC.
As for Coinbase shares, listed on Nasdaq, reels are down 12.5% this Thursday (2) after the brokerage suspended deposits and withdrawals to Silvergate after shares of this bank plummeted 45% this morning.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
