The growing involvement of America’s top public companies in blockchain technology has intensified calls for clear regulatory guidelines to retain crypto developers and talent within the US.
Coinbase recently raised concerns in a “State of Crypto” report over the decline in crypto talent in the US and emphasized the importance of regulatory certainty in ensuring skilled people stay within the country after surveying the top corporations.
The survey of Fortune 500 companies — conducted by The Block on behalf of Coinbase — revealed a 14-point drop in developer share over the past five years despite an uptick in the top companies moving on-chain.
As of May 2024, only 26% of crypto developers are currently based in the US.
Industry leaders now see the availability of trusted talent as a major obstacle to adoption and urge further regulatory clarity for the sector to ensure the US retains its competitive edge.
Lack of skill
The survey highlighted that the lack of skilled developers significantly impacts companies’ ability to fully leverage blockchain technology. Executives indicated that on-chain projects and broader blockchain adoption will suffer without a robust talent pool.
Small businesses — 68% of which are exploring crypto solutions — also feel the pinch. Roughly 50% of those surveyed plan to seek candidates familiar with crypto for finance, legal, or IT/tech roles in their next hiring cycle.
The report noted that these businesses need expertise to navigate blockchain technology and integrate it into their operations, but the current talent pool falls short.
Leaders are calling for clear regulatory guidelines to foster innovation and attract and retain talent in the US. Former Senator Pat Toomey commented on the report on social media and said that without a stable regulatory environment, the US risks losing its competitive edge in the global crypto industry.
He added that regulatory clarity would provide the foundation for sustainable growth and ensure the US remains a leader in technological innovation.
The lack of a robust talent pool comes amid a significant uptick in corporate interest in on-chain projects.
Surge in interest
According to the survey, Fortune 100 companies announced 39% more on-chain projects year-over-year, hitting a record high in the first quarter.
Meanwhile, a survey of Fortune 500 executives revealed that 56% of these companies currently engage in on-chain projects, including consumer-facing payment applications.
Major financial institutions and products are at the forefront of this shift. The demand for spot Bitcoin ETFs has resulted in collective assets under management surpassing $63 billion for these funds. The SEC’s recent approval of spot Ethereum ETF applications further cements traditional financial companies’ growing and sustained interest in the crypto industry.
The tokenization of government securities is also gaining traction. High interest rates have increased the demand for safe, high-yielding T-bills on-chain, with the value of tokenized US Treasury products rising over 1,000% since early 2023 to $1.29 billion.
BlackRock’s tokenized US Treasury fund BUIDL, valued at $382 million, recently surpassed Franklin Templeton’s $368 million fund to become the largest.
According to the report, the tokenized asset market is projected to reach $16 trillion by 2030, equivalent to the current GDP of the European Union.
Small businesses are also exploring crypto solutions, with 68% believing that crypto can address at least one of their financial pain points, such as transaction fees and processing times.
Stablecoins and inclusion
Coinbase also noted the growth of stablecoins in recent years and their potential to enhance payments across borders.
According to the report, global payment giants like PayPal and Stripe have made stablecoins more accessible in recent months. Through Circle, Stripe merchants can accept USDC payments via multiple networks, with payments automatically converting into fiat currency.
Meanwhile, PayPal facilitates cross-border transfers for stablecoin users across approximately 160 countries without transaction fees, compared to the 4.45% to 6.39% average charges in the $860 billion global remittance market.
Stablecoins’ annual settlement volume exceeded $10 trillion in 2023, over 10x the amount of global remittances, signifying a massive shift in how money flows across borders.
The survey also found that many executives believe crypto offers the potential to increase access to the financial system and create wealth for the underbanked and unbanked. About 48% of Fortune 500 executives believe crypto can enhance financial inclusion.
Additionally, 79% of these executives expressed a desire to collaborate on initiatives with US partners, while 72% agreed that a USD-backed digital currency would help maintain the US’ global economic competitiveness.
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