Ripple Policy Head Susan Friedman had recently expressed her concerns over the lack of clear regulations for the digital asset industry in the United States, which is causing crypto companies and opportunities to move overseas to places such as Europe. According to her, the absence of regulations in the US is leading to real and measurable impacts in terms of investment and job loss.

The EU recently introduced the Markets in Crypto-Assets Regulation (MiCA), a proposed set of regulations designed to create a harmonized regulatory framework for crypto assets across the region, highlighting the increasing regulatory clarity in Europe. This is leading to many industry players migrating to Europe, seeking opportunities for innovation and growth.

The US Securities and Exchange Commission (SEC) has been taking multiple approaches to regulate the crypto space in the US, such as launching enforcement actions against Ripple blockchain, Coinbase crypto exchange, and Paxos, the issuer of BUSD stablecoin. However, the regulatory uncertainty and lack of a proper framework have been a source of concern. This was recently highlighted by the Republican legislators of the House Financial Services Committee (FSC), who criticized the current “regulation-by-enforcement” regime and warned of American competitiveness being at risk due to innovation moving overseas.

By way of conclusion, one can observe that the crypto industry is suffering from a lack of regulatory clarity in the US, leading to players and opportunities moving overseas to Europe. The EU’s introduction of the Markets in Crypto-Assets Regulation (MiCA) will surely serve to foster confidence and innovation in the region, while the absence of clear regulations in the US will likely cause a significant loss of jobs and investments. Although the SEC has taken multiple enforcement actions in the crypto-space, a comprehensive framework for the industry is still lacking and there is still much work to be done in this area.



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