Coinbase Flags Crypto Talent Drain from US Amidst Regulatory Concerns

In a report released earlier this week, Coinbase expressed concerns about a decline in cryptocurrency talent in the United States amid the continued increase in public interest in companies.

The largest US exchange has highlighted the need for regulatory clarity around the cryptocurrency space to retain talent within the country.

Declining developer talent in the United States

Coinbase Notes A significant decline in US cryptocurrency developers, falling by 14 points over the past five years to just 26% today. Top Fortune 500 executives have expressed concerns about a shortage of trusted talent, seeing it as a bigger barrier to cryptocurrency adoption than regulatory issues.

On the other hand, small businesses have expressed interest in looking for skilled cryptocurrency candidates to fill future roles in IT, technology, finance, and legal departments. About 68% of small businesses believe that blockchain technology and cryptocurrencies can address their main financial pain points: processing time and transaction fees.

As such, Coinbase emphasizes the need to clarify rules and regulations surrounding cryptocurrencies to keep developers in the United States.

Despite the apparent decline in the number of cryptocurrency developers, the United States is seeing a significant increase in on-chain projects. For example, the number of Web3 initiatives undertaken by Fortune 100 companies increased by 39%. Furthermore, about 56% of CEOs of Fortune 500 companies said their entities are working on on-chain projects such as consumer-facing payment applications.

The report highlights that following the approval of a Bitcoin ETF earlier this year, the assets under management of Bitcoin ETFs exceeded $63 billion due to the entry of more reliable names in the cryptocurrency and blockchain industries.

Coinbase highlighted the vital need for clear rules in the cryptocurrency space. The report indicated that:

“The increased activity underscores the urgent need for clear cryptocurrency rules that help keep cryptocurrency developers and other talent in the U.S., deliver on crypto’s promise of better access, and enable U.S. leadership in cryptocurrency globally.”

Senator Cynthia Lummis He expressed Concern about the Biden and Gary Gensler administration's tough stance on Bitcoin and digital assets. She warned that this approach could push the industry to move abroad, which could affect America's leadership in financial innovation. Loomis called for a more conducive environment to promote the growth of the industry locally.

Other key points in the reports

The Coinbase report also praised efforts by various payment companies, including PayPal and Stripe, to make cryptocurrencies, and specifically, stablecoins, more accessible.

Merchants using Stripe can now accept USDC payments, which are independently converted into fiat currencies.

PayPal also supports transaction-free cross-border transfers across 160 countries, compared to the global standard of 4.45% to 6.39% average fees in the international transfer market.

Additionally, 48% of F500 executives believe that cryptocurrencies can increase access to financial systems, thereby bringing banking services to the unbanked and unbanked. However, all of this can be achieved if the United States takes leadership in the field of cryptocurrencies.