Coinbase CEO: US Lagging Behind as Hong Kong Legalizes Crypto Trading

Coinbase CEO Brian Armstrong has warned that the US risks losing its status as a global financial hub in the long term, as other countries take a more proactive approach to provide regulatory clarity for cryptocurrencies.

In a tweet, Armstrong pointed to the recent move by Hong Kong to make crypto purchases and trading fully legal for its citizens starting from June 1st, 2023, and predicted a huge influx of big money from the East.

Armstrong also noted that the European Union and the United Kingdom have made progress in establishing clear regulations for the crypto industry, while the US lags behind. “Crypto is open to everyone in the world and others are leading,” he said. “Congress should act soon to pass clear legislation.”

The lack of regulatory clarity and the increasingly hostile environment from US regulators towards crypto companies have raised concerns among industry leaders about the country’s ability to stay competitive in the fast-growing sector. Many crypto firms have moved their operations overseas or are considering doing so, citing a more favorable regulatory climate in other countries.

Armstrong’s warning comes as the SEC has recently ramped up its enforcement of crypto firms. Many have criticized the recent actions, including their fine of crypto exchange Kraken, of the SEC as “regulation by enforcement”.

See Also

What does this new US Bill mean for Stablecoins?

Read more: SEC Proposes New Rules for Custodians, Including for Cryptocurrency

Armstrong is not the only crypto CEO to recently criticize crypto regulation, or lack thereof, in the US. As we previously reported, Ripple’s Brad Garlinghouse said that US regulators were “adding confusion” to the crypto marketplace.