Lack of crypto regulations in the US could leave the country
Europe is gradually positioning itself as a welcoming jurisdiction for crypto companies. Meanwhile, screws are tightening across the pond as agencies take matters into their own hands due to a lack of crypto regulations.
On February 26, international political outlet Politico reported that EU officials are starting to present the region as a welcoming place for crypto companies to set up shop.
Furthermore, it noted that Congress is nowhere close to formulating or deploying crypto-asset legislation, adding:
“Industry leaders are increasingly making the transatlantic juxtaposition to argue for clearer regulations as US agencies begin to enforce decades-old rules for trading and banking in the crypto world.”
Lawyer James Finlan highlighted that Ripple can be a good example. Should the SEC win its case against the fintech firm this year, the future of crypto in the US will be very bleak.
Europe and Asia ahead on crypto regulations
According to Stefan Berger, the German lawmaker who led the EU’s crypto regulations, “we want the best framework in the world in which companies can develop.”
“We want everything you need for a functioning market,” he added.
However, 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 on how the industry should be regulated. At 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 like Tom Emmer and Cynthia Lummis who want to embrace it.
Senator Lummis commented that “The European Union is ahead of us. Switzerland is ahead of us. Australia is ahead of us. England is ahead of us.”
Furthermore, Susan Friedman, international policy advisor at Ripple, acknowledged that Europe clearly outperforms the US. “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 the already well-established Singapore.
Crypto carpet bombing
Blockchain Association CEO Kristin Smith echoed the sentiment that US regulators are operating outside their jurisdictions and targeting crypto.
“We feel a crypto carpet bombing moment, where they seem to be trying to throw everything they can within their authority — or potentially overstep their authority — and we think that’s short-term.”
Ultimately, Uncle Sam is quickly left behind on a global scale. Unless Congress stops delaying crypto regulations, the damage could be insurmountable. This could leave the US financial industry in the metaphorical dark ages.
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Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on the latest development, but has yet to hear back.
