Letter: Let’s hope the US follows Europe’s crypto lead

Over the past year, the EU crypto and blockchain market has been described as a “bubble”, a passing trend, and compared to the “wild west”, with commentators often noting the absence of strong legislation or frameworks. operatives as evidence that the market may be rogue (“Crypto markets without borders show the need for global rules”, Special ReportsFebruary 28).

There is no denying that the industry is nascent but it is growing. However, to date, it has lacked a credible framework within which to innovate. All of that is changing. Recently, the European parliament's economic and monetary affairs committee voted on the draft regulation of crypto asset markets (Mica), which seeks to create a harmonized legal framework across the EU for crypto assets. The draft regulation, which has already been approved by EU member states, includes requirements for the issuance of crypto assets and stable coins and the provision of services in crypto assets.

While we believe there is room to refine the final text, including distinguishing between crypto asset service providers that work only with businesses rather than consumers, there is no doubt that it is a statement of intent that Europe is willing to serve. as a financial services incubator. innovation, talent and competition. We hope that the US, which is moving comparatively slower in realizing the potential of crypto assets, will look to the EU as an example as it continues to consider how best to regulate the industry.

We are encouraged to see industry validation move beyond the private sector and individual enthusiasts, and onto government agendas in Europe. The more policymakers in the industry are supported with guidance and legal frameworks, the faster the market will innovate, disrupt outdated financial services, and prove its worth.

Susanna Friedman
Head of Public Policy, Ripple
London EC2, UK