According to reports, the financial services commissioner of the European Commission urged American legislators to create new regulations for the cryptocurrency sector. We do require other parties to enact legislation. We must consider international crypto regulation, the commissioner said.
EU Commissioner Calls on U.S. Lawmakers to Establish New Crypto Rules
In an interview with the Financial Times that was published on Tuesday, Mairead McGuinness, the European Commission’s commissioner for financial services, discussed the regulation of cryptocurrencies.
She emphasized that any regulation imposed on the cryptocurrency industry would need to be global in order to be effective, citing the Markets in Crypto-Assets (MiCA) bill that will provide a regulatory framework for crypto across countries in the European Union. The commissioner elaborated:
We do need to see other players also legislating … perhaps differently, but with the same objective . . . We need to look at global regulation of crypto.
According to the article, McGuinness urged American lawmakers to “draw up sweeping new rules to govern the crypto industry.” She also cautioned that if left unchecked, digital assets could endanger financial stability.
McGuinness met with several American lawmakers during a recent trip to Washington, D.C., including Representative Patrick McHenry (R-NC) and Senator Kirsten Gillibrand, who have been pushing legislation in Congress to regulate the cryptocurrency industry (D-NY).
In April of last year, McHenry introduced the “Eliminate Barriers to Innovation Act,” which was approved by the House of Representatives. It demands that “a working group focused on digital assets be established” by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). McHenry has frequently criticized the SEC for enforcing regulations on the cryptocurrency industry. The “Lummis-Gillibrand Responsible Financial Innovation Act” was introduced by Senators Gillibrand and Cynthia Lummis, a supporter of bitcoin, in June.
Meetings with American legislators, according to McGuinness, gave her hope that they were “moving in the same direction” as their European counterparts. However, she issued a warning: “There’s a lot of concern at a European level as to [what would happen] if crypto were not to be regulated.” The financial services commissioner noted:
There could be — in time, if it grows — financial stability problems. There also are investor issues around a lack of certainty.
The International Monetary Fund (IMF) has been urged to play a leading role in the regulation of crypto assets, according to India’s finance minister. During India’s G20 presidency, the Indian government intends to discuss cryptocurrency regulations with other G20 members. India wants to develop a technology-driven regulatory framework for cryptocurrencies, according to the finance minister.