Ex-CFTC chief sees threat in European crypto-regulation bill

Efforts by European authorities to regulate cryptocurrencies could lead to the imposition of a European model, undermining the ability of US regulators to craft their own rules. This view was voiced by former CFTC chairman Christopher Giancarlo, CoinDesk reports.

The former official cited the MiCA cryptocurrency regulation bill, preliminarily agreed by the Council of the EU and the European Parliament in early July.

The document lays out rules applying to issuers of unbacked crypto assets, stablecoins, trading and custodial platforms. However, it does not cover NFTs. Over the next 18 months, the European Commission may add relevant provisions.

“I am very concerned about the speed of MiCA’s development. It has very broad provisions that, in a sense, export such an approach to crypto assets to the United States,” Giancarlo said.

He urged Congress to step up its regulatory efforts. In his view, the United States should build its own framework, and not adopt regulation emanating from the EU.

“I have great respect for Europe, but their markets are very different,” the former official concluded.

Earlier Giancarlo called for clearer rules for the crypto industry amid the Coinbase–SEC clash. The regulator’s concerns were prompted by Coinbase’s plans to launch crypto-savings accounts under Lend.

In July, U.S. Representative Tom Emmer accused the SEC of “unethical conduct” toward the crypto industry. In his view, the agency uses unfair methods when it comes to digital assets.

Ripple CEO Brad Garlinghouse also criticised the agency. He said that the regulator uses a coercive approach instead of working on clear rules for the industry.

Recall that the CFTC has criticized the SEC’s enforcement-by-coercion approach.

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