Coinbase marks exodus of US crypto talent amid regulatory concerns

In a report published earlier this week, Coinbase expressed concern about the decline in crypto talent in the US amid continued increase in overall corporate interest.

The largest exchange in the United States highlighted the need for regulatory clarity around the crypto space to keep talent within the country.

Declining developer talent in the US

Coinbase notes a significant decline in US-based crypto developers, down 14 points over the past five years to 26% today. Top Fortune 500 executives have expressed concern about the shortage of trusted talent, seeing it as a bigger obstacle to cryptocurrency adoption than regulatory issues.

On the other hand, smaller companies have expressed interest in seeking candidates with cryptographic knowledge to fill future roles in IT, technology, finance and legal departments. About 68% of small businesses believe that blockchain and cryptocurrency can address the main financial issues: processing time and transaction fees.

As such, Coinbase asserts the need for clarity of rules and regulations around crypto to keep developers in the US.

Despite an apparent decline in crypto developers, the US is seeing a significant increase in on-chain projects. For example, the number of Web3 initiatives by Fortune 100 companies has increased by 39%. In addition, about 56% of Fortune 500 company executives mentioned that their entities are working on chain projects such as consumer-facing payment applications.

The report highlights that following the approval of a spot Bitcoin ETF earlier this year, assets under management for spot Bitcoin ETFs have exceeded $63 billion due to the entry of more trusted names into the crypto and blockchain industries.

Coinbase highlighted the vital need for clear rules in crypto. The report noted that:

“The surge in activity underscores the urgency for clear rules for crypto that help keep crypto developers and other talent in the US, deliver on the promise of better crypto access, and enable US leadership in crypto at the worldwide”.

Senator Cynthia Lummis expressed concern about the strict stance of the Biden and Gary Gensler administration on Bitcoin and digital assets. He warned that such an approach could lead to industry moving overseas, potentially undermining America’s leadership in financial innovation. Lummis called for a more welcoming environment to encourage the growth of the industry nationally.

Other key aspects of the reports

Coinbase’s report also praised efforts by several payment companies, including PayPal and Stripe, to make cryptocurrencies, and specifically stablecoins, more widely available.

Merchants using Stripe can now accept USDC payments, which are autonomously converted to fiat.

PayPal also supports transaction-free cross-border transfers in 160 countries, compared to the global standard of 4.45% to 6.39% average fees in the international remittance market.

Additionally, 48% of F500 executives believe that crypto can potentially increase access to financial systems, thus banking for the unbanked and unbanked. However, all of this can be achieved if the United States takes the lead in the crypto space.

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