American crypto giant Coinbase recently highlighted the impact of the Securities and Exchange Commission’s regulatory approach towards the country’s crypto industry. The California-based crypto exchange claimed that the SEC’s regulation-by-enforcement-only approach was threatening the US’s status as a global financial leader.
Coinbase recently took to X (formerly Twitter) to highlight key facts ahead of the SEC Chair’s upcoming testimony:
Coinbase’s comments came in light of SEC Chair Gary Gensler’s testimony in front of the Senate Banking Committee, which is scheduled for later today. According to the crypto exchange, the actions of the SEC under Gensler’s leadership were hindering innovation and America’s leadership on a global level.
Coinbase claimed that the SEC’s regulation by enforcement approach amid regulatory and legislative uncertainty would put a whopping 4 million jobs at risk by 2030. The exchange cited a previous report that documented that 83% of G20 members had made considerable progress toward regulatory clarity for crypto.
Speaking on the importance of a proper regulatory framework for crypto, Coinbase stated:
Crypto is not going away. It cannot be uninvented. Americans want to own crypto, and they want to own it responsibly. It’s time for America to bring this industry onshore where innovation can flourish, jobs can grow, and consumers can be properly protected.
Coinbase pointed out several facts and metrics to make its case for crypto regulation in the country. As per the exchange, the United States’ share of global web3 development had already dropped from 40% to 29% over the past five years due to regulatory uncertainty and hostile enforcement. The country lost nearly 2% of the web3 developer share every year.
A survey of Fortune 500 executives revealed that 46% of them considered regulatory uncertainty as a barrier to investing in crypto. More than 91% of the executives agreed that the lack of clear rules made it harder to navigate the crypto space.
