The SEC’s Hostile Regulation Risks Losing 4 Million Crypto Jobs by 2030, Says Coinbase
The Securities and Exchange Commission (SEC)’s regulatory approach towards the US crypto industry could result in the loss of four million jobs by 2030. This strategy of regulation by enforcement, according to a recent analysis by Coinbase, risks one million developer jobs and three million non-technical jobs over the next seven years.
The uncertainty caused by this regulatory crackdown has already reduced the US’s share of web3 development from 40% to 29% in the past five years. As a result, high-quality, well-paid jobs are moving offshore to locations with more welcoming regulatory environments.
SEC Continues Enforcement Approach Despite Legal Defeats
Despite several legal defeats, the SEC persists with its enforcement-only approach. This is happening despite the fact that one in five Americans own crypto, totaling 52 million people.
SEC Falls Behind Other Nations
Coinbase argues that US regulators are falling behind other nations when it comes to establishing regulatory clarity for the crypto industry. Approximately 83% of major financial hubs worldwide are doing more in this regard.
The UK is on track to create a regulatory framework for cryptocurrencies through the Financial Services and Markets Bill. Meanwhile, the EU has adopted its Markets in Crypto-Assets (MiCA) regulation for its member states.
Hong Kong and the United Arab Emirates have also developed their own regulatory frameworks to become global crypto hubs.
Praise For SEC Crackdown
Coinbase faces opposition from those who believe that the SEC’s crackdown is necessary to protect investors and build a cleaner and better crypto industry. Senator Sherrod Brown criticized the industry at a hearing on oversight, while SEC Chair Gary Gensler showed no signs of softening his stance.
Blue Chip US Companies Also Seek Regulatory Clarity
Coinbase highlights that blue chip American companies are also calling for a regulatory framework to provide clarity to the crypto industry. A survey reveals that 87% of Fortune 500 executives believe clear crypto rules are crucial for sustaining US leadership in the global financial system. Additionally, 92% agree that policymakers should develop new rules specifically for these technologies.
Furthermore, 52% of companies are holding off on investing in the industry until regulations are established, and 46% consider regulatory uncertainty as a barrier to investment.
Hot Take: The US Must Get Crypto Regulations Right to Lead in the Future
The US has the opportunity to be an innovation leader in the crypto economy if it can establish the right regulations. However, if billions of dollars continue to be spent on attracting the crypto industry back to American soil, as was done with the chip industry and manufacturing, this chance may be lost.
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