Due to regulatory uncertainty on crypto, the United States could lose 1 million web3 developer jobs over the next seven years, Coinbase writes in its new report.
A report by Electric Capital stated that the U.S.’s percentage of global web3 developers has decreased from 40% to 29% over the past six years. The United States is losing an average of about 2% of its proportion of web3 developers annually. There are no signs that this trend will slow down.
Coinbase stated that the percentage of web3 developers has dropped mainly due to uncertainties and the US regulatory system emphasizing enforcement over-regulation.
That indicates that high-quality, well-paying jobs are migrating from the US to places that offer better conditions for innovation, such as fair regulation or dedication to technical leadership.
Coinbase stated that they were focused on international markets. Several of these are going forward with plans to become crypto hubs. It opted to become a public company in the US because it believed the U.S. would be best served by embracing this fundamental breakthrough.
The exchange added that it wants the US to adopt a similar strategy. The country’s reliance on enforcement-based regulation is having the opposite effect on the exchange and slowing down the growth of the cryptocurrency industry.
Other countries to overtake US as crypto hubs
As the earliest and most important center for web3 software development, the US enjoyed an early advantage in influencing the future of web3 and the global financial system.
Yet, as other nations fill the gap the US creates with regulatory ambiguity, the country is currently losing market share to areas like Europe and Asia. They have more open legal frameworks and are more open to crypto innovation. The same happens in developing regions like Latin America, India, and Africa.
For instance, Hong Kong announced it would become a hub for web3 companies and digital assets last year. As part of this effort, the government recently set up a state-backed round table between potential crypto firms and bankers to help crypto companies get banking partners.
A trend that challenges not only the US’ influence over the growth of the global financial system but also the U.S.’s preeminence in finance and technology is embracing and adopting crypto innovation by other nations.