Coinbase, a leading cryptocurrency exchange, recently appealed to the US government for pro-crypto policies in light of a report by Electric Capital. The report indicates that the US is at risk of losing 1 million web3 developer jobs to overseas markets within the next 7 years, due to regulatory uncertainty and a regulation by enforcement approach.
According to Electric Capital’s report, the US’s share of global web3 development has dropped from 40% to 29% over the past six years, with an average annual loss of almost 2% of the web3 developer share. The uncertainty surrounding regulation has pushed tech innovation to locations with clearer guidelines and a commitment to technological leadership, such as Europe, Asia, LATAM, India, and Africa.
Despite the challenging regulatory environment, the US still has a passionate developer community eager to build and innovate within the country. Coinbase’s recent Crypto 435 campaign saw over 32,000 developers, builders, and individuals vote on-chain, urging Congress to pass pro-crypto policies that would keep innovation in the US.
The loss of web3 software development could negatively impact the US economy, as it misses out on a market worth nearly $3 trillion at its height. It also poses risks to national security and influence, as the US loses the ability to define financial systems and data system standards.
Coinbase urges the US to invest in education programs and initiatives focusing on blockchain and cryptocurrency development, create regulatory clarity for the crypto industry, and collaborate with international organizations to develop global standards for blockchain and cryptocurrency technologies. Failing to do so could result in the US losing out on significant technological and economic opportunities.