The Former Head Of The CFTC Saw A Threat To The Crypto Industry In The European Regulation Bill

The efforts of the EU authorities in regulating cryptocurrencies may lead to the imposition of a European model, which will damage the ability of US supervisors to create their own rules effectively. This opinion was expressed by the former chairman of the CFTC, Christopher Giancarlo, who writes CoinDesk.

The former official referred to the MiCA Cryptocurrency Regulation Bill, which was tentatively agreed upon by the EU Council and the European Parliament in early July.

The document describes the rules for issuers of unsecured crypto assets, stablecoins, trading, and custodial platforms. However, it does not affect NFTs. Within 18 months, the European Commission may supplement it with relevant provisions.

“I am very concerned about the pace of development of MiCA. It has very broad provisions that, in a sense, export this approach to crypto assets to the United States,” Giancarlo said.

He urged Congress to “gain momentum” on the regulatory framework. According to him, the US should create its structure and “not accept regulation from the EU.”

“I have great respect for Europe, but their markets are very different,” the former official concluded.

Earlier, Giancarlo called for more explicit rules for the cryptocurrency industry amid Coinbase’s conflict with the SEC. The reason for the regulator’s dissatisfaction was the bitcoin exchange’s plans to launch Lend crypto savings accounts.

In July, US House of Representatives member Tom Emmer accused the SEC of being “unethical” to the crypto industry. In his opinion, the department uses unfair methods regarding digital assets.

Ripple CEO Brad Garlinghouse also criticized the Commission. According to him, the regulator is taking a coercive approach instead of working on clear rules for the industry.