Coinbase has stated that the U.S. government’s strict approach to regulating cryptocurrencies has opened the door for other countries to fill the vacuum left behind. The Securities and Exchange Commission (SEC) recently sent a wells notice to Coinbase, suggesting that it may take enforcement action over potential violations of securities laws related to the firm’s asset listings, staking services, and Coinbase Wallet. Despite calls for comprehensive regulation, the U.S. has adopted a regulation-by-enforcement approach that has resulted in an uncertain and unstable crypto industry, according to Daniel Seifert, Coinbase’s Vice President and Regional Managing Director in Europe.
Seifert emphasized that the U.S. is losing its position as the leading hub for the crypto industry, while France, the U.K., and the European Union are building vibrant ecosystems thanks to their friendlier approach to regulation. He cited the Blockchain Week event being hosted at the Louvre in Paris this month, the U.K.’s push to become a crypto hub, and the EU’s upcoming Markets in Crypto-Assets (MiCA) regulation as examples. The MiCA regulation aims to establish a harmonized set of rules for crypto-assets and related activities and services and is expected to provide clear guidelines and rules for the European cryptocurrency industry.
The Crypto Council for Innovation also highlighted similar developments across the world, including the National Australia Bank’s work with non-USD pegged stablecoins, Hong Kong’s efforts to become a digital asset hub, and the Canadian Securities Administration’s recent imposition of enhanced investor protection commitments on domestic crypto exchanges. The Council noted that the crypto industry is global, and nobody is waiting for the U.S. to lead the way.