US regulatory paralysis drives crypto industry players to Europe, warns Ripple Policy Head Susan Friedman, highlighting the impact on jobs and investment loss.
According to experts, the absence of rules and guidelines for the digital asset industry in the United States forces key business opportunities and innovation to escape the country to other nations with proper frameworks, such as European countries and UAE.
Susan Friedman, the Policy Head at the Ripple blockchain, recently expressed her concerns over the migration of crypto industry players to Europe due to the lack of clear regulatory guidelines in the United States.
According to Friedman, fears regarding innovation moving overseas are not exaggerated enough, as the industry is already witnessing a migration of talent to Europe, where the rules of the road are clear thanks to the recently introduced MiCA regulations.
Fears regarding innovation moving overseas are not overstated – crypto industry players are already migrating to places like Europe where the rules of the road are clear thanks to MiCA. US regulatory paralysis has real, measurable impact in terms of jobs and investment lost. https://t.co/2Ajr7fjhf9
— Susan Friedman (@ss_friedman) May 10, 2023
Notably, MiCA stands for the Markets in Crypto-Assets Regulation. It is a proposed set of regulations designed to create a harmonized regulatory framework for crypto assets across the European Union (EU). The regulation was introduced by the European Commission in September 2020 and is expected to come into effect in 2024.
Friedman’s comments come amid growing concern within the crypto industry over the lack of regulatory clarity in the U.S. Despite numerous calls for clear guidelines, US regulatory agencies have yet to provide a comprehensive framework for the industry, leading many players to look for opportunities elsewhere.
Furthermore, the Ripple policy head said that the U.S. regulatory paralysis has a measurable impact on the country in terms of jobs and investment loss. With many crypto companies opting to set up shop in Europe, the U.S. risks losing a significant share of the industry’s growth potential.
Regulation by Enforcement
Despite the absence of clear rules, the Securities and Exchange Commission (SEC), one of the top regulatory agencies in the United States, has undertaken numerous crackdowns on crypto businesses such as Ripple blockchain, Coinbase crypto exchange, and Paxos, the issuer of BUSD stablecoin.
Yesterday, the Republican members of the House Financial Services Committee (FSC) issued a statement criticizing the SEC’s “regulation by enforcement” regime for digital assets.
While expressing concerns over the regulatory approach taken by the SEC, the FSC also argued that regulation by enforcement is pushing innovation in the digital asset ecosystem overseas, putting American competitiveness at risk.
The @SECGov‘s regulation by enforcement regime is pushing innovation in the digital asset ecosystem overseas, threatening American competitiveness.
Republicans will provide regulatory clarity for digital assets to preserve this technology and its potential here in the U.S. pic.twitter.com/c4MezMHDKb
— Financial Services GOP (@FinancialCmte) May 10, 2023
As The Crypto Basic reported in a recent interview, Ripple President Monica Long criticized the regulation-by-enforcement approach in the US, highlighting Europe’s better regulatory landscape despite having multiple sovereign states. She expressed confidence about a positive outcome in the SEC lawsuit in Ripple Favour.
Follow Us on Twitter and Facebook.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
