The USA must support new digital innovations.
Coinbase CEO Brian Armstrong believes that one of the most robust policy arguments for cryptocurrency is that it’s a national security issue. He argues that the United States cannot afford to have cryptocurrency go offshore as well, as this would have a chilling effect on innovation within the space.
In his tweet, Armstrong cites the example of semiconductors and 5G technology, which are now primarily manufactured offshore. He believes that the same could happen with cryptocurrency if the proper regulations are not implemented.
One of the strongest policy arguments for cryptocurrency is that it's a national security issue. The US missed on semiconductors and 5g which is now largely manufactured offshore. It can't afford to have cryptocurrency go offshore as well. (same for every country btw)
— Brian Armstrong (@brian_armstrong) September 20, 2022
The Coinbase CEO has been an outspoken advocate for crypto regulation and has even testified before Congress on the matter. He believes there is a need for clear rules and regulations to give businesses the clarity they need to operate within the space.
However, Armstrong also acknowledges that regulation by enforcement has its own problems, as it can stifle innovation. He believes that the best way to strike a balance is to have clear and concise regulations that are followed by a light-touch enforcement regime.
“Regulation by enforcement has a terrible chilling effect, and rhetoric matters – we’ve already seen a huge amount of crypto talent, asset issuers, and startups go offshore.”
In the end, Armstrong believes that the United States needs to take cryptocurrency seriously as it has the potential to be a significant force in the global economy. He argues that crypto assets are too important to America and the free world to allow them to go offshore.
Some of his followers on Twitter argue that the lack of clarity around regulations is what’s driving businesses and talent offshore. Others believe that the heavy-handedness of regulators is pushing people away.
Whatever the case may be, it’s clear that Armstrong believes that the United States needs to take action on cryptocurrency regulation sooner rather than later. Otherwise, it risks losing its position as a leader in the space.
Finally, he said that his exchange is based in the USA and has legal rights, so they will try to do everything they can to make crypto succeed.
“Coinbase is a global company, but we’re based right here in the USA and will fight to make sure crypto succeeds here for everyone. It’s too important to America and the free world.”