Coinbase CEO Brian Armstrong criticized US regulators over their approach to bringing “regulatory clarity” to cryptocurrency and warned that innovation is moving offshore.
In a MarketWatch opinion article on Tuesday, Armstrong said that the US is “inadvertently driving crypto-innovation offshore” by enforcing restrictive policies.
He argued that this will compromise America’s legacy of pioneering technological advancements and weaken its national security posture.
Armstrong specifically cited China as a country that is benefiting from the US’s restrictive policies. He noted that China has its own digital yuan, which has processed over $14 billion worth of transactions so far. He also said that China plans to use its digital yuan to challenge the US dollar and its role in global commerce.
Armstrong’s comments come as the crypto industry is facing increasing scrutiny from regulators around the world. In the US, the Securities and Exchange Commission (SEC) has been cracking down on cryptocurrency exchanges, and the Commodity Futures Trading Commission (CFTC) has also been taking steps to regulate the industry.
Armstrong’s criticism of US regulators is likely to further inflame tensions between the crypto industry and the government.
However, it is also possible that Armstrong’s comments will prompt regulators to take a more nuanced approach to regulating cryptocurrency.