Key Points
- •Coinbase CEO challenges the anti-DeFi proposal from the Senate.
- •Potential $1 trillion DeFi capital flight.
- •Ethereum-centric assets at risk of U.S. withdrawal.
Coinbase CEO Brian Armstrong has publicly opposed the Senate's recent anti-decentralized finance proposal, emphasizing its potential setbacks on innovation in the United States.
The proposal risks driving DeFi innovation and capital overseas, with industry leaders suggesting it could hinder U.S. leadership in the cryptocurrency sector.
Coinbase's CEO Brian Armstrong has expressed strong opposition to a Senate proposal targeting decentralized finance (DeFi). The proposal might set back innovation in the U.S., according to Brian Armstrong, potentially impacting the country's crypto leadership.
This proposal involves multiple stakeholders, including the Blockchain Association and Variant Fund. Armstrong's vocal opposition is shared by Summer Mersinger, CEO of Blockchain Association, and Jake Chervinsky, CLO of Variant Fund. They predict repercussions for U.S. DeFi innovation.
The proposal's introduction has prompted immediate concerns about possible capital flight and innovation setbacks. U.S. market share in DeFi may decline as companies prepare for relocation in more favorable jurisdictions.
Financial impacts are expected with potential DeFi exodus, highlighted by the Blockchain Association warning of significant investment loss. The bill could compel developers to shift operations overseas to maintain growth and profitability in crypto technologies.
Industry insiders foresee a decline in U.S. competitiveness in crypto if stringent regulation proceeds. The Blockchain Association projects over $1 trillion in DeFi investment could move to permissive jurisdictions if enforced.
Potential regulatory fallout might replicate past trends, including exodus from U.S.-based protocols. Precedents cited include enforcement actions against leading platforms, potentially reinforcing international migration of innovations and liquidity, impacting ETH-centric assets.
Brian Armstrong, CEO, Coinbase, "We absolutely won’t accept this. It’s a bad proposal, plain and simple, that would set innovation back, and prevent the US from becoming the crypto capital of the world." — source