A Commissioner of the U.S. Securities and Exchange Commission (SEC) is reportedly warning that the US risks lagging behind the EU and UK in terms of creating clear crypto regulations.
According to a new report by the Financial Times, SEC Commissioner Hester Peirce says that 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 UK and the EU’s approach of applying the rules of traditional finance to that 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’re shooting ourselves in the foot by not having a regulatory regime in the US.”
MiCA is the EU’s set of rules that governs the issuance and provision of services that involve crypto assets and stablecoins. According to The Financial Times, MiCA is slated to come into force next year.
The Commissioner goes on to say that the US cracking down on prominent crypto companies such as Coinbase instead of creating transparent guidelines is driving crypto firms to move to other jurisdictions that have already established consistent rules.
“You keep coming back to this question of what if people move their companies to [other jurisdictions]. The point 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 determination” was in the works to recommend an enforcement action against the crypto exchange for allegedly violating securities laws.
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