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EU approves MiCA, US crypto firms consider relocating amid regulatory uncertainty | Weekly recap

Press Releases Crypto News Crypto-News EU approves MiCA, US crypto firms consider relocating amid regulatory uncertainty | Weekly recap

This week, the crypto industry was largely dominated by regulatory developments. Industry leaders continued to express concerns about the regulatory climate in the United States, with some firms contemplating migrating in response to the Securities and Exchange Commission’s (SEC)crackdown. In contrast, the European Union had more clarity, as the parliament approved proposals in the Markets in Crypto Assets (MiCA) bill.

The SEC sustains regulatory efforts

The SEC is unyielding in its efforts. On April 17, the agency declared its readiness to regulate decentralized finance (DeFi), which critics say would slow down or impede the sphere’s growth.

SEC chairperson Gary Gensler confirmed that DeFi would not be exempt from their supervision. They plan to modify the definition of “exchange” to include decentralized platforms such as DEXs. Further regulation would involve phrasing that concentrates on virtual assets.

However, some regulators expressed reservations, with commissioner Hester Peirce warning that the proposal’s ambiguity could compromise free speech rights and promote incumbents while limiting innovation in the financial market.

Moreover, Representative Warren Davidson intends to propose legislation to oust chairman Gary Gensler due to his perceived overreach in cryptocurrency regulation. This is mainly in light of the SEC’s proposed redefinition of “exchange.”

While Gensler argues that the update would enhance investor protection, crypto advocates have criticized it as an overreach. Davidson sees Gensler’s removal as a way to address authority misuse.

In another effort, reports from April 16 revealed that the SEC served crypto exchange Bittrex a Wells Notice, alleging that it breached regulations by not registering as a broker-dealer, clearinghouse, or exchange.

On April 17, the SEC charged Bittrex “for failing to register as a national securities exchange.” The exchange Go to Source to See Full Article
Author: Wahid Pessarlay

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