The increasing involvement of top American public companies in blockchain technology has heightened calls for clear regulatory guidelines to retain crypto developers and talent within the United States.

In a recent "State of Crypto" report, Coinbase highlighted concerns about the decline in crypto talent in the US and emphasized the crucial role of regulatory certainty in retaining skilled individuals in the country. A survey conducted by The Block on behalf of Coinbase among Fortune 500 companies revealed a 14-point decrease in the share of developers over the past five years, despite increased adoption of blockchain technology by these leading corporations.

As of May 2024, only 26% of crypto developers are currently based in the US. Industry leaders view the availability of trusted talent as a significant barrier to adoption and stress the need for regulatory clarity to maintain America's competitive edge.

The report underscored that the shortage of skilled developers significantly hampers companies' ability to fully utilize blockchain technology. Many executives indicated that without a robust talent pool, on-chain projects and broader blockchain adoption will suffer.

Small businesses, a majority of which (68%) are exploring crypto solutions, also face challenges in finding candidates with crypto expertise for roles in finance, legal, and IT/tech. Approximately half of these businesses plan to recruit individuals familiar with crypto in their next hiring cycle.

Leaders in the industry are advocating for clear regulatory guidelines to foster innovation and attract and retain talent within the US. Former Senator Pat Toomey responded to the report on social media, emphasizing that a stable regulatory environment is crucial to preventing the US from losing its leadership position in the global crypto industry. He stressed that regulatory clarity would provide a foundation for sustainable growth and technological innovation in the country.

The shortage of a robust talent pool coincides with a significant increase in corporate interest in on-chain projects. Fortune 100 companies reported a 39% year-over-year increase in on-chain projects in the first quarter, reaching a record high.

Financial institutions are prominently involved in this shift, with the demand for spot Bitcoin ETFs leading to combined assets under management exceeding $63 billion for these funds. The recent approval of spot Ethereum ETF applications by the SEC further underscores traditional financial institutions' growing interest in the crypto sector.

Moreover, there is a growing trend towards tokenizing government securities, driven by high interest rates and increasing demand for safe, high-yielding assets on-chain. The value of tokenized US Treasury products has surged over 1,000% since early 2023 to $1.29 billion.

The report also highlighted the rise of stablecoins and their potential to revolutionize cross-border payments. Global payment giants like PayPal and Stripe have facilitated broader access to stablecoins, with Stripe merchants now able to accept USDC payments across multiple networks. PayPal enables fee-free cross-border transfers for stablecoin users in approximately 160 countries, compared to the significant charges in the global remittance market.

Stablecoins recorded an annual settlement volume exceeding $10 trillion in 2023, surpassing global remittances by over tenfold and indicating a profound shift in global money flows.

Furthermore, many executives believe that crypto can enhance financial inclusion, benefiting the underbanked and unbanked populations. Nearly half of Fortune 500 executives surveyed see crypto as a tool to improve financial access.

Additionally, a majority expressed interest in collaborating on initiatives with US partners, and a significant percentage supported the idea of a USD-backed digital currency to bolster America's global economic competitiveness.