A conference heard on Wednesday that a “fire hose” of crypto asset regulation options lacks the global consensus needed to attract experienced investors and develop the industry.
MiCA, the world’s first complete crypto asset market laws, was finalized by the European Union, although Britain and the U.S. remain behind.
In many countries, crypto companies are unregulated save for money laundering and terrorism funding laws. “It’s commendable that Europe was able to get that done so quickly,” U.S. Securities and Exchange Commission commissioner Hester Peirce told a Financial Times conference.
If we had solid regulations, people would come. That’s MiCA. “By not having a regulatory regime in the U.S., we are hurting ourselves,” Peirce added. Peirce said Congress must decide which regulatory entity oversees crypto.
After FTX’s collapse last year, the U.S. derivatives authority CFTC is also monitoring the industry.
Eva Gustavsson, Copper’s head of public affairs, said E.U. laws would serve as worldwide norms until a global standard is agreed upon. “We are drinking from a veritable fire hose of regulatory proposals,” Gustavsson added.
“It’s unrealistic for any firm to think they won’t need to comply soon.” The Financial Conduct Authority’s executive director for supervision, Sarah Pritchard, stressed global norms and harmonization.
Pritchard said IOSCO, an umbrella organization for securities regulators, will soon propose worldwide legislation. Gustavsson said increased regulation would bring more institutional investors into the crypto industry to “mature it further.”
