- US SEC’s Hester Peirce says European Regulation MiCA could serve as a “model” for the US
- The SEC Commissioner spoke at a Financial Times live event this week.
- MiCA establishes rules for crypto aimed to ensure that crypto transfers can always be traced and for suspicious transactions to be blocked.
Republican leader at the United States Securities and Exchange Commission (SEC) Hester Pierce has urged the US to adopt a similar regulation structure as the one used in Europe. The comment comes as the country continues to experience back and forth between stakeholders on writing the industry rules.
Also Read: EU could veto large stablecoins during MiCA approval process, regulator signals
SEC official wants the US to mimic Europe’s crypto regulation
Speaking at a live event with the Financial Times earlier this week, Hester Pierce, otherwise called Crypto Mom, said European regulation MiCA could serve as a “model” for the US.
MiCA can serve as a model for us.
The comment sprouts from an April vote among European Union lawmakers as they sought to determine whether the Crypto Assets law (or MiCA) would pass. The resolve caught the eye of Binance CEO Changpeng Zhao, who hailed the continent for being among the largest markets in the world to introduce tailored regulations for crypto to protect users and support innovation.
The European Parliament voted for MiCA to be implemented.
— CZ Binance (@cz_binance) April 20, 2023
This means one of the world’s largest markets is introducing tailored regulations for crypto to protect users and support innovation.
The fine details will matter, but overall we think this is a pragmatic solution to…
Notably, MiCA’s crypto regulation, which would cover transactions above €1000 from so-called self-hosted wallets when interacting with hosted wallets, is intended to ensure that cryptocurrency transfers can remain traceable whenever necessary. The rules also ascertain that they can be blocked whenever transactions prove suspicious or utterly dubious.
Nevertheless, MiCA rules do not apply to peer-to-peer (P2P) transfers performed between two individuals, buyer, and seller, without the involvement of a third party.
The rules do not apply to person-to-person transfers conducted without a provider or among providers acting on their own behalf.
Crypto regulations move in the US
While Peirce noted that the US Congress is “working on some things, she expressed skepticism, or a lack of optimism, over the country’s regulatory system.
Notably, the House Financial Services Committee and House Agricultural Committee will introduce comprehensive legislation to guide the crypto sector by June or thereabouts. With that, Senators Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., are looking to introduce a revised version of the Responsible Innovation Act this spring.
The bill, first introduced in June, will be more detailed in its definitions of tokens. Specifically, it will clarify definitions. Lummis and Gillibrand had delegated oversight of the most popular cryptocurrencies to the Commodity Futures Trading Commission (CFTC) while the pair focused on addressing stablecoins and taxes.
Similarly, regulators have held frequent meetings to discuss crypto, with one scheduled in the House Financial Services Committee on May 18, where lawmakers will tackle stablecoin legislation.
Nevertheless, while several bills made progress in 2022, what stood out was the failure of lawmakers to pass comprehensive legislation on crypto.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.