Lacking Crypto Regulations in US Could Leave the Country Behind
Europe is gradually positioning itself as a welcoming jurisdiction for crypto companies. Meanwhile, the screws are tightening across the pond as agencies take things into their own hands due to a lack of crypto regulations.
On Feb. 26, international politics outlet Politico reported that European Union officials are beginning to pitch the region as a welcoming place for crypto businesses to set up shop.
Furthermore, it noted that Congress is nowhere near formulating or deploying legislation for crypto assets, adding:
“Industry leaders are increasingly making the trans-Atlantic juxtaposition to argue for clearer regulations as U.S. agencies begin to enforce decades-old rules for trading and banking in the crypto world.”
Lawyer James Finlan highlighted that Ripple could become a prime example. Should the SEC win its case against the fintech firm this year, the future for crypto in the United States would be very grim.
Europe and Asia Ahead on Crypto Regulations
According to Stefan Berger, the German lawmaker who spearheaded EU crypto regulations, “we will have the best framework in the world in which companies can develop.”
“We will have everything that you need for a workable market,” he added.
However, the Markets in Digital Assets (MiCA) crypto regulations are not expected to be rolled out across the EU until 2024.
American politicians are still deeply divided over how the industry should be regulated. On one extreme are the likes of Elizabeth Warren and Gary Gensler, who want to crush the industry. While on the other side are proactive politicians such as Tom Emmer and Cynthia Lummis that want to embrace it.
Senator Lummis commented that “the European Union’s ahead of us. Switzerland’s ahead of us. Australia’s ahead of us. England’s ahead of us.”
Furthermore, Susan Friedman, international policy counsel at Ripple, acknowledged that Europe is clearly outpacing the United States. “We fully expect Europe to become a natural hub for responsible participants going forward,” she said.
Additionally, in the Far East, Hong Kong is gearing up to become the Asian crypto hub alongside Singapore which is already well established.
Crypto Carpet Bombing
Blockchain Association CEO, Kristin Smith, echoed the sentiment that U.S. regulators are operating out of their jurisdictions and targeting crypto.
“We’re feeling a crypto carpet-bombing moment, where they seem to be trying to throw whatever they can within their authority — or potentially exceeding their authority — and we think that’s shortsighted.”
Ultimately, Uncle Sam is getting left behind on a global level fast. Unless Congress stops procrastinating on crypto regulations, the damage could be insurmountable. This could leave the American finance industry in the metaphorical dark ages.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.