EU vs US: Why Europe Crypto Regulation Is Worrying US Officials
Patrick Hansen, a crypto venture advisor and expert on European policy, made predictions about the timeline of two landmark EU crypto bills. Hansen reveals that Markets in Crypto-assets(MiCA) and Transfer of Funds Regulation (TFR), two landmark crypto bills, will pass between December 2022 and January 2023.
The speedy regulation by the EU is worrying US regulators. Hansen reveals that the scope and speed of these regulations concern the US and might force them to act faster.
Crypto Regulation In the EU
The MiCA aims at protecting the customers and investors of crypto companies. It also sets liabilities for the issuers if they lose the crypto assets of their users.
MiCA also regulates stablecoins and requires their issuers to maintain proper reserves and meet liquidity requirements during withdrawal. The TFR on the other hand forms money-laundering regulations and tackles the issues of money-laundering in crypto.
Hansen reveals that the European Union is currently working on other crypto initiatives with high implications. These include more anti-money laundering regulations, DeFi report, NFT report, DeFi supervision pilot, and Digital Euro Legislation.
Why EU Laws Are Worrying US
The United States is concerned by the scope and speed at which the EU is discussing crypto regulations. Hansen reveals that while the final date is still undecided, the regulations can be voted on by the January of the next year. He also includes that voting is a mere formality at this point, as all the regulations are agreed upon.
TFR, being a smaller regulation, might come into effect much earlier.
US lawmakers are also pushing crypto regulation. The support of a regulatory crypto framework is bipartisan and bicameral in the US. However, there is still no deadline for any substantive move. The commissioner of the Commodity Futures Trading Commission, Caroline D Pham, affirmed that the US should strive to be rule makers, not rule takers.
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