US SEC’s Hester Peirce Says European Regulation MiCA Could Serve as a “Model” for the US
SEC Commissioner Hester Peirce, known in the crypto community as “Crypto Mom,” recently praised Europe’s Markets in Crypto Assets law (MiCA) as a potential model for the US as it struggles to regulate the cryptocurrency industry. Peirce made these comments at a Financial Times event, where she acknowledged that the regulatory system in the US may not be optimistic, but Congress is “working on some things.”
The MiCA law, which was passed by European Union lawmakers in April, aims to establish rules for cryptocurrencies to ensure traceability of crypto transfers and block suspicious transactions. The law would cover transactions above €1000 from self-hosted wallets when they interact with hosted wallets. However, the rules do not apply to person-to-person transfers conducted without a provider or among providers acting on their own behalf. Peirce believes that the MiCA law could be a potential model for the US, as it sets clear guidelines for the industry, which could benefit investors and market players.
In the US, several lawmakers are working on comprehensive legislation to oversee the cryptocurrency sector. The House Financial Services Committee and House Agriculture Committee are set to introduce legislation in the next month or so, while Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y. plan to introduce a revised version of the Responsible Innovation Act this spring, which will provide more detailed definitions of tokens and clarify definitions.
In addition, lawmakers have regularly held hearings to discuss cryptocurrency, with one scheduled in the House Financial Services Committee on May 18 to discuss stablecoin legislation. While several bills made progress last year, lawmakers were unable to pass comprehensive legislation on crypto. Nonetheless, with more regulations and guidelines being developed, investors and market players can have a clearer understanding of the regulatory environment, which could boost the growth of the industry in the long run.