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Coinbase’s CEO has again urged American regulators to make clear its stance on crypto and amend current policies.
Failing to do so, could see innovation occur elsewhere.
“It's important for American technology leadership and national security that this industry be built (at least in part) in America,” said Brian Armstrong, sharing a recent op-ed piece further detailing his position.
Failing to reel in crypto rules stateside, Armstrong argued that other countries, notably mainland China, could take the lead. "China aims to directly challenge the U.S. dollar and its role in global commerce,” he wrote, adding that building a portion of the industry in America is a matter of national security.
He specifically mentioned seven other global financial powerhouses including the U.K., United Arab Emirates, Brazil, Japan, the European Union, Australia, and Singapore that are "vying to become crypto hubs."
The crypto exchange has long been in a battle with the Securities and Exchange Commission after the regulator issued Coinbase with a Wells Notice earlier this year.
According to reports at that time, the SEC was expected to take action against the firm over its staking services. Kraken, another U.S.-based crypto exchange, was also hit with a $30 million fine for its staking service, forcing the crypto exchange to shutter the offering to its American clientele.
Other crypto businesses have expressed similar concerns, including Ripple CEO Brad Garlinghouse, who recently said that "confusing" regulations in the U.S. will push the industry off-shore.
Like Garlinghouse, Armstrong also highlighted the need for regulatory clarity in the U.S.
He added that Coinbase has regularly asked policymakers and regulators for "regulatory clarity needed to ensure consumer protection and realize the promise of crypto."
Crypto regulations abroad
While the U.S. continues to hammer out its rule book, crypto regulations are already getting put in place abroad.
Europe, for example, has just ushered in its latest crypto rulebook called Markets in Crypto Assets (MiCA). Though it’s far from comprehensive, it’s already earned nods of approval for providing clear guidelines for crypto firms.
SEC Commissioner Hester Peirce said MiCA could even serve as a “model” for regulations in the U.S.
In Hong Kong, authorities are also expected to allow retail investment from June 1, with some experts suggesting “that Beijing wants to use the territory as a testing ground" for a wider reopening in mainland China.