In an opinion piece on May 30, Brian Armstrong, the CEO of Coinbase, wrote that recent crypto industry turbulence “might make it tempting for policymakers to write it off as an unstable asset class.” He warned that treating cryptocurrencies as a speculative or gambling tool rather than a financial technology foundation would risk America's time-honored role as the global financial leader and innovation hub.

Armstrong highlighted that the United States and other democratic nations are up against digital systems promoted by an ambitious adversary, China. He cautioned that China is promoting its digital platforms globally through its Belt and Road Initiatives, such as Alipay and Tencent. Furthermore, he stated that Beijing is pushing hard for its digital yuan central bank digital currency (CBDC) and aims to directly challenge the US dollar's role in global commerce.

According to Armstrong, Hong Kong is positioning itself as a global crypto hub given China's moves and strategies to leverage financial technology to protect its national interests. Notably, China is not the only country racing ahead with the rollout of crypto regulations. The UK, Japan, the European Union, Singapore, and Australia are all vying for a slice of the crypto industry pie.

Armstrong further noted that America's lack of regulatory clarity is only fueling China's push to dominate digital finance. He emphasized that although innovation may continue elsewhere with regulatory uncertainty in the United States, it is essential to recognize the opportunities that the crypto industry presents. The crypto industry has the potential to transform various sectors, including healthcare, finance, and supply chain management.

He urged policymakers to provide regulatory clarity on cryptocurrency policies to help businesses operating in this space thrive and compete globally. Additionally, he urged Congress to establish a national, bipartisan commission to study the future of digital finance and ensure that America remains at the forefront of financial innovation.

Overall, Armstrong's article highlights the need for policymakers to take a serious look at the crypto industry's potential and work towards establishing clear regulatory policies. With China and other global powers racing ahead with their digital finance strategies, it is crucial for the United States to act quickly and decisively to secure its position as a global financial leader and innovation hub.