The increasing involvement of major US public companies in blockchain technology has heightened calls for clear regulatory guidelines to retain crypto developers and talent within the country.

Coinbase recently highlighted concerns in its "State of Crypto" report regarding the decline in crypto talent in the US. The report stressed the critical need for regulatory certainty to keep skilled individuals within the country, based on a survey conducted by The Block among Fortune 500 companies.

According to the survey, there has been a 14-point decrease in the share of crypto developers based in the US over the past five years, despite an increase in on-chain initiatives by top corporations. As of May 2024, only 26% of crypto developers are currently located in the US.

Industry leaders view the availability of competent talent as a significant barrier to adoption and advocate for clearer regulatory frameworks to ensure the US maintains its competitive position. They argue that without a robust talent pool, companies will struggle to fully leverage blockchain technology and integrate it into their operations.

Small businesses, a majority of which (68%) are exploring crypto solutions, also face challenges due to the shortage of qualified candidates for roles in finance, legal, and IT/tech related to crypto.

Former Senator Pat Toomey responded to the report on social media, emphasizing that a stable regulatory environment is crucial for preventing the US from losing its edge in the global crypto industry. He stressed that regulatory clarity would establish a foundation for sustainable growth and enable the US to lead in technological innovation.

The shortage of skilled talent coincides with a notable rise in corporate interest in on-chain projects. Fortune 100 companies, for instance, announced a 39% increase in on-chain initiatives year-over-year, reaching record levels in the first quarter.

Financial institutions are prominently driving this shift, with significant interest in spot Bitcoin ETFs and recently approved spot Ethereum ETFs by the SEC further solidifying traditional financial companies' ongoing interest in the crypto sector.

Tokenization of government securities is also gaining momentum, driven by high interest rates and the attractiveness of high-yielding T-bills on-chain. The value of tokenized US Treasury products has surged over 1,000% since early 2023 to $1.29 billion.

The report also underscores the growth of stablecoins, which are increasingly seen as vehicles for enhancing cross-border payments. Major global payment processors like PayPal and Stripe have facilitated broader access to stablecoins, offering payment acceptance and transfers across numerous countries without traditional transaction fees.

Stablecoins recorded an annual settlement volume surpassing $10 trillion in 2023, highlighting their growing significance in global financial flows compared to traditional remittances.

Executives surveyed also recognize crypto's potential to promote financial inclusion, with nearly half of Fortune 500 executives believing that crypto technologies can improve access to the financial system, particularly for underbanked and unbanked populations.

Moreover, a significant majority of executives expressed interest in collaborating on crypto initiatives with US partners and indicated that a US-backed digital currency could bolster the country's competitiveness in the global economy.