A US Securities and Exchange Commission (SEC) commissioner is reportedly warning that the US risks falling behind the EU and UK in creating clear crypto regulation.
According to a new report from the Financial Times, SEC Commissioner Hester Peirce says the frameworks created by Brussels and London could serve as blueprints for US lawmakers.
According to Peirce, the US is making a huge mistake by not adopting the approach of the UK and the EU to apply the rules of traditional finance to those of the crypto industry.
As stated by Peirce to The Financial Times,
““[The UK’s] approach is one that can serve as a model for us, MiCA (Markets in Crypto Assets Regulation) can serve as a model for us. I think we are shooting ourselves in the foot by not having a regulatory regime in the US.”
MiCA is the EU’s set of rules governing the issuance and provision of services involving crypto-assets and stablecoins. According to The Financial Times, MiCA will go into effect next year.
The commissioner goes on to say that the US’s crackdown on prominent crypto companies like Coinbase instead of setting transparent guidelines is pushing crypto companies to move to other jurisdictions that have already established consistent rules.
“You keep coming back to the question of what if people move their company [other jurisdictions]. The thing is, if we built a good regulatory regime, people would come.
In March, the SEC issued a Wells notice to Coinbase warning that a “preliminary decision” was in the works to recommend an enforcement action against the crypto exchange for allegedly violating securities laws.
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