Blockchain CEO warns of upcoming innovation in China and criticizes US lawmakers and regulators for their regulatory approach

The CEO of blockchain, Brian Armstrong, criticized US lawmakers and regulators for their approach in providing “regulatory clarity” to cryptocurrency and warned that innovation is moving offshore.

Armstrong said in an opinion article on MarketWatch that countries such as China will benefit from “restrictive US crypto policies.”

“By enforcing restrictive policies, the US is inadvertently driving crypto-innovation offshore,” Armstrong said. “That shift will compromise America’s legacy of pioneering technological advancements, and weaken our national security posture.”

China moving forward

China has its own digital yuan which has processed over $14 billion worth of transactions so far, according to a figure from October 2022.

“And with the recent launch of its digital yuan, China aims to directly challenge the US dollar and its role in global commerce,” Armstrong said.

According to previous reporting, financial service providers in China will soon allow citizens to pay for wealth products using the digital yuan.

Eleven countries have launched a CBDC, including the Bahamas and Nigeria, according to the Atlantic Council, which tracks CBDCs in 120 countries.

Blockchain focus on Washington DC

Meanwhile, blockchain has focused on Washington DC, particularly with a new TV campaign promoting the future of crypto.

“Cryptocurrency, regardless of what you think about it, is not going anywhere,” Armstrong said in a black and white and almost two-minute long commercial.

Blockchain is currently facing an ongoing feud with a US regulator after being served a Wells notice in March over some of its products.

A Wells notice means that the US Securities and Exchange Commission is ready to recommend formal charges to its five-member commission.

SEC Chair Gary Gensler has called on exchanges to register and recently said this month that they tend to be “rife with conflicts.”

Lawmakers in the US capital are working on bills to regulate crypto, but it remains to be seen what bills will come to fruition.

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