The United States is facing severe troubles with comprehensive crypto regulation; Paolo Tasca points out the shortcomings. During a recent online interview, co-founder and chairman of DLT Science Foundation, Paolo Tasca, talked about the void that the U.S. regulatory authorities have failed to fill in the due course of time.
U.S. Crypto Regulations and Challenges
Market experts assert that the United States has failed in the crypto regulation race, while its peers like the E.U. are on the verge of implementing MiCA. The Market in Crypto Asset (MiCA) regulation is believed to be a pioneer in comprehensive crypto regulation. On the other hand, with its regulatory crackdown, the U.S. is seriously hampering the crypto industry’s growth in America.
Regulatory clarity is the primary piece that needs to be added to the puzzle. Tasca discussed the recent lawsuits against market giants like Coinbase and Ripple. Also, how these actions have passed on a negative message to the crypto community, he voiced the concern of the crypto industry, saying they want a clear regulatory framework to operate on.
Billionaire Mark Cuban noted the need for a transparent, more straightforward version of crypto regulations. He asserted that the current statute is creating unnecessary complications and an unhealthy environment for the crypto industry and related startups. He suggested that Congress and the Securities and Exchange Commission sit together to design a comprehensive regulatory framework.
The Entangled United States Crypto Scenario
It is a no-brainer that the U.S. crypto scene is very complex. Tasca pointed out the uniqueness and complexity of the situation. He specifically cited the scenario where the emerging market is initially overlooked and is bombarded with regulations after it reaches a particular stage.
The crypto scenario in the United States follows a similar road. Since the inception of Bitcoin and other altcoins in 2009, the industry has been overlooked and allowed to grow uncontrollably. After the events of Terra Ecosystem collapse, the FTX-saga, numerous exploits, and hacks woke the authorities from a deep slumber, pushing them to wage war against the industry.
The two leading regulatory agencies, the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have been fighting for supremacy over the crypto industry. If a crypto asset is a commodity, it falls under CFTC’s jurisdiction, and the SEC would police if they are securities. The recent attempt by the SEC to rebrand numerous assets as securities can be seen with a similar lens.
Moreover, experts feel that the United States is afraid of the alternate financial system provided by cryptocurrency. They cannot allow the shift of power, but the industry is ready to accept the regulations if there are any. This creates an impasse where either party can call the shots and be done with it.
Upcoming Bills that Could Change the Crypto Regulation Scenario
The United States lawmakers are working on four bills that could change the crypto regulation scenario. The list includes the Financial Innovation and Technology for the 21st Century Act (FITCA), the Responsible Financial Innovation Act (RFIA), the Digital Asset Market Structure Bill (DAMS), and the Digital Commodity Exchange Act (DCEA).
These bills aim to solve the crypto regulation conundrum in the United States. It would also allow the CFTC and SEC to join hands in regulating crypto. It is still time for any of these to be effective, more so, to witness the results, but it is a step in the right direction nonetheless.
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