With respect to financial oversight, investor protection, and market stability, the regulatory landscape governing cryptocurrencies and blockchain assets varies massively from one jurisdiction to another. In terms of regulatory influence, the United States and the European Union might be credited as the two more potent systems. While in the U.S., securities laws are enforced by the SEC, in the EU, new crypto regulation was put forth in the form of Markets in Crypto-Assets, or MiCA.
The U.S. cryptocurrency regulations are fragmented and in the hands of many authorities. Thus, the SEC declares many cryptocurrencies to be securities and places stringent measures of compliance in force, including registration requirements. The CFTC has control over crypto derivatives, and FinCEN, on the other hand, imposes AML and KYC obligations. The regulatory ambiguity will continue to stand in the face of many enforcement actions with regard to crypto firms, with further arguments going on as to whether they constitute securities or commodities.
EU took a rather more coherent approach with the MiCA regulation, aiming at providing legal clarity for digital assets. MiCA would therefore lay down the ground rules for stablecoins, exchanges, and wallet providers in a way that provides consumer protection while enhancing innovation. The European regulatory landscape would not be confused, in contrast to the states, where uncertainty resides in different jurisdictions with separate rules and regulations.
As countries around the world are further defining their regulations, the crypto industry must somehow squeeze itself within inconsistent and changing frameworks. While the U.S. is trying to enforce existing laws through court cases, the EU is standing ahead, proving the way to enact a complete and tailored regulation on crypto.
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~ Nesaty