Coinbase CEO: China Expected to Benefit Most from US Crypto Regulations

The general crypto market has been facing ups and downs, changes and fluctuations due to macros such as regulatory clampdowns, economic issues, etc.

In a shocking revelation, the CEO of one the largest crypto exchanges, Coinbase, has unveiled a surprising prediction. According to Brain Armstrong, China stands to gain the most from the stringent crypto regulation in the United States.

The Coinbase CEO suggests that tighter regulatory measures might inadvertently push innovation and investment toward China.

The US May Lose Its Leader Position To China 

Brain Armstrong warns that America will risk its time-honored role as the global financial leader and innovation hub failure to see the bigger picture.

Brain claims that Coinbase and other prominent crypto firms have asked policymakers for more regulatory clarity. But instead of providing new policies that would help crypto firms, they’re getting threats of enforcement action.

Further, he stated that implementing restrictive policies by the U.S. is unintentionally causing crypto-innovation to move overseas. Also, this act will potentially jeopardize America’s reputation for pioneering technological advancements and undermining national security.

Currently, 80% of Americans feel that the existing financial system is not working in their favor and meeting their needs. Additionally, 70% of them have concerns that their children will face even more challenges and have a lower standard of living in the future.

Brain emphasized that the Smart-and bespoke- regulation in the 1990s and early 2000s enabled the U.S. to define the Internet Age. The CEO added that now is perfect for Congress to utilize the opportunities presented by crypto just like the past eras.

Further, Armstrong cautioned that the absence of comprehensive crypto legislation would force the U.S. into a costly catch-up scenario, requiring billions of dollars to revive innovation within the country. However, despite significant and persistent efforts, he acknowledged that it might still be too late to reclaim lost ground.

China Advances National Interest With Financial Technology 

Alipay and Tencent are Chinese tech firms offering integrated payment systems with instant access to various services.

The Chinese Communist Party promotes these two payment platforms owned by two Chinese tech behemoths through its Belt and Road initiatives.

According to Armstrong, while the U.S. and other democratic nations kick against digital systems promoted by China, the country has continued pushing forward in innovative technologies.

With the recent launch of its digital Yuan, China aims to challenge the role of the U.S. dollar in global commerce.

Given China’s pursuit to advance its national interests, it is unsurprising that Hong Kong is emerging as a global crypto hub positioning its environment for more participation.