Coinbase CEO Says U.S. crypto policy will end up benefiting China

• Coinbase CEO warned U.S. policymakers about the consequences of their restrictive crypto policies.
• Armstrong highlighted the recent launch of the digital yuan, which may challenge the dominance of USD.

Brian Armstrong, the man behind the largest crypto exchange in the United States, has issued a warning for the country’s lawmakers and policymakers over their approach to the crypto industry.

According to the Coinbase CEO, the restrictive crypto policies in the United States will end up benefiting an ambitious adversary like China.

Armstrong highlighted the developments in China on the blockchain front and warned that they may eventually challenge the global dominance of the U.S. Dollar. 

American lawmakers missing the bigger picture

Brian Armstrong penned an opinion piece in MarketWatch on 30 May. The Coinbase CEO reflected on the recent developments in the United States with regard to the crypto industry in the piece.

Armstrong said the recent turbulence in the market may tempt policymakers to collectively write off crypto tokens. They could be classified as an “unstable asset class”. He believes that by doing this, the policymakers would be missing the bigger picture. 

Armstrong emphasized that crypto’s purpose extended beyond its utility in digital payments. According to the Coinbase executive, failing to recognize crypto’s potential as a transformative technology would threaten U.S.’s position.

He also expressed disappointment at the fact that instead of providing regulatory clarity to the crypto industry, the country’s regulators threatened to initiate enforcement action. 

Armstrong further added,

“By enforcing restrictive policies, the U.S. is inadvertently driving crypto-innovation offshore. That shift will compromise America’s legacy of pioneering technological advancements, and weaken our national security posture.”

He underscored the threat from China by highlighting the progress made by Chinese tech giants Alipay and Tencent. He stated that both the firms were actively being promoted by the Chinese Communist Party, leading to rapid scaling.

The Coinbase CEO also highlighted the recent launch of the Digital Yuan, which challenged the U.S. Dollar’s role in global trade.