Coinbase Signals Drain of U.S. Crypto Talent Amid Regulatory Concerns

In a report released earlier this week, Coinbase expressed concern about the decline in crypto talent in the U.S. amid continued growth in overall corporate interest.

The largest US exchange emphasized the need for transparent regulations in the cryptocurrency area to retain talent in the country.

Decline in programming talent in the US

Coinbase has seen a significant decline in the number of U.S.-based cryptocurrency creators, down 14 points over the past five years to just 26% today. Top Fortune 500 executives have expressed concerns about the shortage of trusted talent, viewing it as a bigger obstacle to cryptocurrency adoption than regulatory issues.

On the other hand, smaller companies have expressed interest in seeking cryptocurrency-savvy candidates to fill future positions in IT, technology, finance and legal departments. About 68% of small businesses believe that blockchain and cryptocurrencies can solve their main financial problems: processing times and transaction fees.

As such, Coinbase emphasizes the need for transparency in cryptocurrency rules and regulations to keep developers in the US.

Despite a visible decline in the number of cryptocurrency creators, there is a significant increase in on-chain projects in the US. For example, the number of Web3 initiatives led by Fortune 100 companies increased by 39%. Moreover, approximately 56% of Fortune 500 company executives mentioned that their entities are working on online projects, such as consumer-facing payment applications.

The report highlighted that following the approval of the spot Bitcoin ETF earlier this year, assets under management of spot Bitcoin ETFs have surpassed $63 billion as more trusted names in the cryptocurrency and blockchain industry enter the market.

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

“The increased activity underscores the urgent need for clear cryptocurrency policies that will help retain cryptocurrency developers and other talent in the U.S., fulfill crypto’s promise of improved access, and position the U.S. for global cryptocurrency leadership.”

Senator Cynthia Lummis expressed concern about the strict stance of the Biden administration and Gary Gensler on Bitcoin and digital assets. She warned that this approach could prompt the industry to move overseas, which could impact America’s leadership in financial innovation. Lummis called for a more welcoming environment to support the industry’s growth in the domestic market.

Other key information included in the reports

The Coinbase report also praised the efforts of various payment companies, including PayPal and Stripe, to increase the availability of cryptocurrencies, and stablecoins in particular.

Merchants using Stripe can now accept USDC payments, which automatically convert to fiat currency.

PayPal also supports cross-border transfers without transactions in 160 countries, compared to the global standard of 4.45% to 6.39% of average fees in the international money transfer market.

Additionally, 48% of F500 executives believe that cryptocurrencies have the potential to increase access to financial systems and therefore banking for the underbanked and unbanked. However, all this can be achieved if the United States takes leadership in the crypto space.