Growing Calls for Clear Regulatory Guidelines as US Companies Seek to Retain Crypto Talent
The increasing involvement of top public companies in the United States in blockchain technology has led to mounting pressure for clear regulatory guidelines to keep crypto developers and talent within the country.
A recent report by Coinbase highlighted concerns over the decreasing number of skilled crypto professionals in the US. The report emphasized the importance of regulatory certainty to ensure that talented individuals remain in the country. A survey of Fortune 500 companies, conducted by The Block on behalf of Coinbase, showed a 14-point drop in the share of developers over the past five years despite more top companies adopting on-chain solutions.
Currently, only 26% of crypto developers are based in the US as of May 2024, raising concerns among industry leaders. The lack of skilled developers was identified as a major obstacle for companies looking to leverage blockchain technology to its full potential. Executives indicated that on-chain projects and broader blockchain adoption will suffer without a robust talent pool.
Small businesses, a majority of which are exploring crypto solutions, are also feeling the impact of the talent shortage. Approximately 50% of surveyed businesses plan to hire candidates with crypto knowledge for various roles in their next hiring cycle. The report highlighted the need for expertise in navigating blockchain technology and integrating it into operations, which the current talent pool falls short of.
Calls for clear regulatory guidelines to foster innovation and retain talent in the US have been echoed by industry leaders. Without a stable regulatory environment, the US risks losing its competitive edge in the global crypto industry, warned former Senator Pat Toomey. He stressed that regulatory clarity is essential for sustainable growth and maintaining US leadership in technological innovation.
The push for clear regulations comes at a time when corporate interest in on-chain projects is on the rise. Fortune 100 companies have announced 39% more on-chain projects year-over-year, hitting a record high in the first quarter. The survey also revealed that 56% of Fortune 500 companies are currently engaged in on-chain projects, including consumer-facing payment applications.
Major financial institutions are leading this shift, with the demand for spot Bitcoin ETFs surpassing $63 billion in collective assets under management. The approval of spot Ethereum ETF applications by the SEC further solidifies traditional financial companies’ interest in the crypto industry. Tokenization of government securities is also gaining traction, with the value of tokenized US Treasury products rising over 1,000% since early 2023 to $1.29 billion.
The report projects that the tokenized asset market could reach $16 trillion by 2030, equivalent to the current GDP of the European Union. Additionally, stablecoins are becoming increasingly popular for cross-border payments, with global payment giants like PayPal and Stripe making them more accessible. The annual settlement volume of stablecoins exceeded $10 trillion in 2023, showcasing a significant shift in how money moves across borders.
Many executives believe that crypto has the potential to enhance financial inclusion and create wealth for the underbanked and unbanked populations. A majority of Fortune 500 executives expressed interest in collaborating on initiatives with US partners, while most agreed that a USD-backed digital currency could help maintain the country’s global economic competitiveness.
