The United States could greatly benefit from adopting Europe's recent crypto regulations as a model, asserts the SEC commissioner.
Hester Peirce, a US Securities and Exchange Commission (SEC) commissioner and crypto supporter, praised the European Union's promptness in establishing its digital asset regulation.
SEC commissioner shared her thoughts on the current crypto landscape in the US during the Financial Times's Crypto and Digital Assets Summit in London.
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During the summit, Peirce stated that European Union's MiCA could offer valuable insights for the US and that the UK's efforts to create a crypto-friendly regulatory environment could also be inspiring.
It is worth noting that the European Parliament passed the Markets in Crypto Assets (MiCA) last month, providing a comprehensive crypto regulatory framework for the entire 27-member bloc.
Peirce claims that she supports a system that informs consumers about risks and promotes innovation, which is vital for the industry. Although unsure about the timeline, she remains optimistic about learning and adopting from the European experience to roll out its own crypto regulations.
I think that's something that we can learn from and draw from, but whether or not that will take a little longer for us, I don't know.
The SEC commissioner also emphasized the advantage the US has of observing how MiCA unfolds in Europe.
Peirce predicts that MiCA's introduction could attract more businesses to Europe due to a more transparent regulatory environment.
On top of that, the SEC commissioner argued that US regulators are "shooting <themselves> in the foot" by not collaborating with industry experts, emphasizing that decentralized finance (DeFi) could increase the financial system's stability.
I would think that we would be delighted to see a more resilient financial system built on decentralized finance, rather than having everything concentrated in a few large centralized entities.
Previously, EU politicians have expressed their willingness to share their crypto regulatory experiences with the US. In 2022, Financial Commissioner Mairead McGuinness proposed to create a global crypto agreement spearheaded by the EU and the US.
The US has multiple agencies, including the SEC, that oversee crypto. However, tensions between regulators and crypto-related companies have intensified, with Coinbase taking the SEC to court for clarification on its crypto stance.
Europe's progressive crypto regulations may provide a valuable blueprint for the United States, fostering a more resilient and decentralized financial system.
