June 9, 2023

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Europe benefits from legislative chaos in the US

Europe benefits from legislative chaos in the US

We’ve been writing regularly about the confusion in the US when it comes to crypto regulations this year. US regulators are not keen on setting clear guidelines for crypto companies. Meanwhile, Europe is doing this, and a big change seems to be underway.

US Crypto Exodus

The US Securities and Exchange Commission (SEC) is the bogeyman of the crypto industry in the US and has been very hard on the crypto industry. A number of major companies seem to be considering moving overseas, perhaps to Europe. Ripple (XRP) CEO Brad Carlinghouse speculated about this in an interview on Thursday. with CNBC:

“[Vanwege verwarrende regulatie in de VS] You see companies and investments flowing to other jurisdictions. Europe in particular seems to be benefiting greatly from this US confusion.

In Europe, things are much better from a legal perspective. While officials aren’t necessarily big fans of the crypto sector, we’re slowly seeing more clarity. For example, last week the long-awaited MiCa crypto law was passed by European finance ministers.

The MiCa Crypto Act lays down clear guidelines that crypto companies in the European Union must adhere to. While this gives users and businesses much less freedom, it is much better than the situation in the US. The SEC’s hostility toward the US crypto industry is becoming unsustainable.

Rosier than crypto in Europe

This is a stark contrast to the situation in France, for example. For example, the French leave the door wide open for companies to move out of the legislative climate in the United States. Owen Simonin, CEO of the French crypto investment platform, explains:

“We have a clear advantage in France [wetgevend] structure. 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 clear legislation for crypto companies since 2019. Also, the aforementioned European MiCa crypto law will come into effect next year. As long as US regulators continue to falter, Europe is expected to provide a new home for US crypto outflows. So it looks promising for the future of the European crypto industry.

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