Hester Peirce sees MiCA as a model for U.S. crypto regulation

The European Parliament-approved Markets in Crypto Assets Regulation (MiCA) and the UK’s approach to developing norms for digital assets could form the starting point for the regulatory framework in the United States. SEC Commissioner Hester Peirce said, according to The Block.

“We are shooting ourselves in the foot because of the lack of a good regulatory regime in the United States. I favour the approach of telling people: ‘Look, there are risks here, you can participate or opt out.’ And then we try to find a model that allows for innovation.”, she said.

Peirce acknowledged that she is not very optimistic about prospects for reducing regulatory uncertainty in the United States.

In February 2023, the commissioner urged Congress to accelerate the development of the regulatory framework for cryptocurrencies.

A month earlier, Peirce said that the community and regulators should learn lessons from the problems the industry has faced.

Since the start of 2023, the SEC has flagged violations at Bittrex, Coinbase, Kraken, Gemini and Genesis.

In April, the head of the regulator Gary Gensler came under criticism over his agency’s stance on digital assets during hearings before the U.S. House of Representatives.

Subsequently, Congressman Warren Davidson introduced a bill that would remove Gensler from the post of SEC chair.

Coinbase CEO Brian Armstrong said that the head of the agency not to regulate the industry, but to restrict it.