- US regulatory uncertainty is driving the crypto industry overseas.
- Ripple counsel warns of potential job and economic losses.
- GOP Financial Services accuses the SEC of “regulation by enforcement.”
The US regulatory uncertainty surrounding digital assets is driving innovation and investment overseas, leading to potential job and economic losses, industry insiders warn. Susan Friedman, counsel at Ripple International Policy, voiced her concerns about the migration of crypto industry regulations, which are now clearer and more predictable thanks to MiCA.
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
She warned that fears of losing innovation to other countries are not overstated. Her comments echo the GOP Financial Services, which accused the SEC of using a “regulation by enforcement” approach, which is pushing digital asset innovation overseas and undermining America’s competitiveness in the sector.
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
The Republican Party, through its chairman, is calling for clear regulatory guidelines for digital assets to preserve this technology and its potential in the US. While innovation in the digital asset industry has exploded in recent years, regulatory clarity has allegedly been slow to catch up, leaving many businesses unsure of how to comply with existing laws.
The lack of clear regulations has also led to a patchwork of legal frameworks that vary by state, adding to the uncertainty for businesses operating in the sector.
According to experts in the field, the consequences of regulatory uncertainty can be severe, as businesses and investors may choose to move to countries with more predictable regulatory environments. This migration of talent and investment can lead to economic losses for the US as well as stifle innovation and job growth in the digital asset industry.
The situation is not without hope, however. The SEC has indicated that it is working on a framework for digital assets, and some states have taken steps to create their own regulatory guidelines.