The United States risks losing out on one million web3 developer jobs and millions of related non-technical jobs over the next seven years if it continues on its current path of regulation by enforcement, which is pushing tech innovation overseas. A recent report from venture capital firm Electric Capital shows that the US’s global share of web3 developers has dropped from 40% to 29% over the last six years, with no sign of slowing down.
The country had an early lead in shaping the future of web3 and the global financial system, being the first and biggest hub for web3 software development. But it is now losing market share as other countries are stepping in to fill the void it is creating with regulatory uncertainty.
The US is losing market share to regions with more regulatory clarity and openness to crypto innovation like Europe and Asia, as well as emerging markets like LATAM, India, and Africa.
This is a significant risk for the US, as web3 developer jobs fuel broader financial inclusion in the evermore global crypto economy. It’s not just about economic competitiveness, but also about standards, influence, and national security, as said by Coinbase’s Brian Armstrong.
Losing market share means that other countries can influence global financial and data standards more. These countries are now becoming more attractive locations for tech innovation due to their clear regulations or commitment to technological leadership.
Armstrong also said that the US should embrace this fundamental innovation and become a “crypto hub” like other countries. However, the current regulatory approach is instead leading to a disappointing trend for crypto development in the US.
The Electric Capital report emphasizes the need for the US to invest in educational programs and initiatives that focus on blockchain and cryptocurrency development to create a highly skilled workforce and retain top talent within it.
