As a deluge of regulatory measures looms on the horizon of the nascent crypto markets, many analysts and investors alike have been quick to plead with regulators to not regulate the markets with the stroke of a broad brush, and to rather take a case-by-case approach.
Now, one pro-crypto SEC Commissioner is echoing these requests, and noted in a recent speech that she believes a dynamic approach to the crypto markets will be most effective and will stop the U.S. from falling behind other countries when it comes to regulating the bourgeoning markets.
Commissioner Peirce Fears US May Fall Behind Other Countries in Crypto Regulation
Last month the world was taken aback when US President Donald Trump and Treasury Secretary Steven Mnuchin both shared their negative opinions on Bitcoin and cryptocurrency in general, with the Treasury Secretary noting the crypto markets will soon be met with “very, very strong” regulations.
Despite this, if these “very strong” regulatory measures are not forward thinking and are implemented with the goal of restraining the technology, the United States may fall behind other countries.
Hester M. Peirce, a commissioner at the SEC, recently spoke about regulating the crypto markets during a speech in Singapore, where she explained that the country may drive companies and innovation into other countries.
“I often have expressed my concern that the U.S. will fall behind other countries in attracting crypto-related businesses unless we are more forward-leaning in establishing a regulatory regime with discernible parameters,” she explained.
One peculiarity about the US regulatory system that makes it difficult is the large amount of regulatory bodies that could have jurisdiction over the crypto markets.
“One of the peculiarities of the U.S. system is the sheer number of regulators. Not only do we have the state-federal allocation of responsibility that I just mentioned, but we have multiple federal financial regulators,” she noted.
Cryptocurrency Companies Concur with Commissioner Peirce
Recently, FinTech company Ripple sent a letter to Congress advocating for a case-by-case approach to regulating the crypto markets, with the company’s CEO Brad Garlinghouse explaining in a tweet that “not all crypto is the same.”
“This industry is at a crossroads. On the eve of more congressional hearings on blockchain, we @Ripple want to make things clear – not all crypto is the same, and we’re committed to partnering with govts and financial institutions globally,” he explained.
This industry is at a crossroads. On the eve of more congressional hearings on blockchain, we @Ripple want to make things clear – not all crypto is the same, and we’re committed to partnering with govts and financial institutions globally. https://t.co/lSYJbF9RSS
— Brad Garlinghouse (@bgarlinghouse) July 29, 2019
As the regulatory situation surrounding the crypto markets continues to unfold, it is highly probable that the world will soon know whether or not the US will stay a center for innovation, or if companies will begin shifting their operations elsewhere.
Featured image from Shutterstock.