Coinbase recently released a report expressing concerns about the decreasing number of crypto talent in the United States. The report highlighted the importance of regulatory clarity in the crypto industry to retain talent within the country.
According to the report, there has been a significant decline in US-based crypto developers, with only 26% of developers currently based in the US, a 14-point decrease over the past five years. While larger corporations are worried about a shortage of trusted talent, smaller businesses are actively seeking crypto-savvy candidates to fill roles in various departments such as IT, tech, finance, and legal.
Coinbase emphasized the need for clear rules and regulations in the crypto industry to retain developers in the US. Despite the decline in developers, there has been a notable increase in on-chain projects in the US. Fortune 100 companies have seen a 39% increase in Web3 initiatives, and 56% of Fortune 500 executives are working on on-chain projects like consumer-facing payment applications.
The report also mentioned the approval of a spot Bitcoin ETF earlier this year, leading to over $63 billion in assets under management for spot Bitcoin ETFs. This influx of trusted names in the crypto industry underscores the importance of clear regulations to keep developers and talent in the US and maintain the country’s leadership in the global crypto market.
Senator Cynthia Lummis raised concerns about the strict stance of the Biden administration and Gary Gensler on Bitcoin and digital assets. She warned that this approach could drive the industry overseas, potentially impacting America’s position as a leader in financial innovation. Lummis called for a more supportive environment to foster the growth of the industry domestically.
The report also praised efforts by payment companies like PayPal and Stripe to make crypto, particularly stablecoins, more accessible. Merchants using Stripe can now accept USDC payments, which automatically convert to fiat. PayPal offers transaction-free cross-border transfers across 160 countries, a significant improvement compared to the average charges in the international remittance market.
Furthermore, 48% of Fortune 500 executives believe that crypto has the potential to increase access to financial systems, particularly for the underbanked and unbanked populations. However, achieving this goal requires the US to take a leading role in the crypto space.
In conclusion, the report highlights the urgent need for clear regulations in the crypto industry to retain talent in the US, drive innovation, and maintain the country’s leadership in the global market. It emphasizes the importance of creating a supportive environment for crypto companies to thrive and continue to push boundaries in the evolving digital economy.