This year we regularly write about the chaos in America when it comes to crypto regulations. US regulators don’t seem eager to set clear guidelines for crypto companies. In the meantime, Europe is doing this, and a major transition seems to be underway.
The US crypto exodus
The US Security and Exchange Commission (SEC) is the bogeyman of the crypto sector in the United States and makes it very difficult for the crypto industry. Several prominent companies seem to be considering a move abroad, perhaps a crossing to Europe. The CEO of Ripple (XRP), Brad Garlinghouse, speculates on this in an interview on Thursday with CNBC:
“(Because of confusing regulation in the US) you see businesses and investments flowing into other jurisdictions. Europe in particular seems to benefit greatly from this confusion in the United States.”
In Europe, things are a lot better from a legal point of view. Although authorities are not necessarily a big fan of the crypto sector, we are slowly seeing more clarity. For example, last week the long-awaited MiCa crypto law was passed by the European finance ministers.
The MiCa crypto law lays down clear guidelines that crypto companies in the European Union must adhere to. While this will give users and businesses a lot less freedom, it’s a lot better than the situation in America. The SEC’s hostile attitude towards the US crypto sector is becoming unsustainable.
Rosy ahead of crypto in Europe
It is a clear contrast to the situation in France, for example. For example, the French seem to be throwing the doors wide open to companies fleeing the legislative climate in America. Owen Simonin, the CEO of a French crypto investment platform explains:
“In France we have the advantage of a clear (legislative) framework. France is likely to extend its legislative framework to the European level. It provides a clear, defined legal framework that attracts large international companies, opening up the European market to them.”
France has had clear legislation for crypto companies since 2019. In addition, the aforementioned European MiCa crypto law will come into effect from next year. As long as US regulators continue to flounder, it is expected that Europe will provide the US crypto exodus with a new home. It therefore looks rosy for the future of the European crypto industry.