A new report by Electric Capital reveals that the United States is at risk of losing up to 1 million tech jobs in the next seven years as web3 development moves overseas due to regulatory uncertainty. The US’s share of global web3 development has already dropped from 40% to 29% over the past six years, fueled by a regulation by enforcement approach. As a result, more than 32,000 developers, builders, and individuals have participated in the Crypto 435 campaign, urging Congress to pass pro-crypto policies that would keep innovation in the country.
Coinbase, a leading cryptocurrency exchange platform, has also voiced concerns over the US’s lagging position in the race to become a “crypto hub.” Countries in Europe, Asia, LATAM, India, and Africa are actively fostering more conducive environments for crypto innovation, which is further diminishing America’s role in the global financial system.
Despite the challenging regulatory environment, the US still boasts a passionate developer community. The Electric Capital report shows a 5% YoY increase in global web3 development, even amid a 70% decline in crypto prices. Moreover, thousands of individuals have voted on-chain during the Crypto 435 campaign, demanding Congress enact pro-crypto policies to keep innovation within US borders.
The US’s leadership in web3 software development contributes to job creation and market growth, as well as financial inclusion in the global cryptoeconomy. However, the nation’s diminishing market share could jeopardize its influence over global financial and data standards, impacting national security and American values.
To maintain its leadership in the blockchain and cryptocurrency ecosystem, the US needs to adapt its policies to encourage innovation and talent retention. This includes investing in educational programs, providing regulatory clarity, and fostering collaboration between government, the private sector, and academic institutions.
Coinbase continues to urge Congress to pass pro-crypto policies and ensure the US remains a frontrunner in the global blockchain and cryptocurrency space. Failure to act could mean missing out on one of the most significant technological and economic opportunities of our time.