Failure to regulate cryptocurrency might leave the US trailing while China seizes the crypto opportunity.
US scrutiny on crypto firms is increasing day-by-day which is resulting in the shutting down of many crypto firms and exchanges. Many exchanges have stopped providing crypto services in some significant parts of the US including Canada as the crypto regulations are in an uncertain position.
The recent turbulence in banking and the US Debt ceiling turndown raised many questions about US Economy. Famous crypto researcher Keyur Rohit (@CryptoKingKeyur) outlines China's possible success in the realm of cryptocurrency in a surprising revelation. According to Coinbase CEO Brian Armstrong, while the United States struggles with restrictive crypto policies, China stands to benefit the most.
Armstrong emphasises that a lack of regulatory clarity in the United States is causing crypto businesses to migrate offshore, opening the door for "adversary nations" like China to step in and seize the lead. The CEO of Coinbase claims that rejecting cryptocurrency as an unstable asset class risks causing the United States to lose its financial leadership and innovation hub status.
Armstrong emphasises the revolutionary aspect of cryptocurrencies, emphasising their ability to revolutionise many areas such as finance, supply networks, and social media. He emphasises the significance of recognising cryptocurrency's promise to provide a speedier, less expensive, and more private platform.
Armstrong, as a public person and the CEO of Coinbase, has long advocated for US officials to provide the crypto industry with regulatory clarity that would allow it to realise its full potential while protecting consumers.
Coinbase has also requested the Securities and Exchange Commission for clarification on which digital assets constitute as securities, arguing against the SEC's "regulation by enforcement" strategy. SEC Chair Gary Gensler has previously claimed that digital assets are already subject to existing securities regulations.
Previously In a series of tweets, Keyur Rohit claimed that the prospect of China lifting its ban on cryptocurrencies had sent shockwaves through the digital currency industry.
He explained how China is planning to uplift the 2021 crypto ban while giving the slightest signals on Televisions.
On Wednesday, the analyst took a deep dig into the US's unstable crypto policies and how it could make China the next crypto hub.
He alluded that the recent launch of the digital yuan cements China's goal to challenge the US as the world's financial powerhouse. Without comprehensive crypto law, the United States risks lagging behind, while Hong Kong strives to become a major role in the market.
Armstrong warns of the catastrophic repercussions of passivity, claiming that recovering the United States' inventive edge would necessitate massive and continuous efforts, potentially costing billions of dollars. However, there is a sense of urgency because time may be running out to retake the top spot in the fast-changing crypto market.
In a nutshell, the United States is at a crossroads in the domain of cryptocurrencies, with China ready to seize the lead. The United States restrictive crypto regulations and lack of regulatory certainty are driving crypto enterprises abroad, providing China with a big opportunity.