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SEC Commissioner's Shocking Revelation: Could EU Crypto Rules Set The Stage For The US?

Published 10/05/2023, 18:38
Updated 10/05/2023, 19:40
© Reuters.  SEC Commissioner's Shocking Revelation: Could EU Crypto Rules Set The Stage For The US?
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Benzinga - SEC Commissioner Hester Peirce cited the European Union's (EU) recently implemented Markets in Crypto Assets (MiCA) regulation as a potential blueprint for U.S. cryptocurrency rules.

During a panel discussion at the Financial Times Crypto and Digital Assets Summit in London, Peirce acknowledged that both the EU's MiCA and U.K.'s regulatory approach could provide valuable insights for U.S. regulators, The Block reported.

Peirce, who is known for her differing opinions from SEC Chair Gary Gensler, expressed her support for an approach that informs people of the associated risks and allows them to opt in or out, while also fostering innovation.

The MiCA regulation, which was officially adopted by the EU last month, aims to establish a "global standard-setter" for digital assets and attract digital asset businesses.

It provides clear definitions and scope for cryptocurrency regulation, primarily targeting centralized points within the industry.

Also Read: Is Grayscale's Partnership With Coinbase On The Chopping Block? SEC Drama Unfolds

With a license in one EU member state, a firm can access the entire EU market.

Prominent figures within the crypto community, such as Binance CEO Changpeng Zhao and Coinbase Global Inc. CEO Brian Armstrong, have praised the European regulations.

"If we built a good regulatory regime, people would come," Peirce said, adding that the current U.S. regulatory environment is hindering progress.

Despite her endorsement of the EU model, Peirce remains pessimistic about the U.S. adopting a similar regulatory framework in the near future.

Read Next: Crypto Whales Scoop Up Pepe Tokens By The Billions: Is This Memecoin The Next Big Thing?

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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