Coinbase, CEO Brian Armstrong, has warned about the threat posed by China’s increasing dominance in the cryptocurrency and fintech industry.

Armstrong emphasized that disregarding cryptocurrencies as an unstable asset class undermines America’s global financial leadership.

He cautioned that restrictive policies in the U.S. unintentionally push crypto innovation overseas, enabling China to promote its digital platforms and challenge the U.S. dollar’s role in global commerce.

Other nations are actively pursuing crypto regulations, highlighting the need for the U.S. to recognize the technology’s significance to maintain its innovative advantage.