Former CFTC chief sees threat in European crypto-regulation bill

Efforts by European Union authorities to regulate cryptocurrencies could lead to an imposition of the European model, damaging the ability of U.S. supervisors to effectively create their own rules. This opinion was expressed by former CFTC chairman Christopher Giancarlo, writes CoinDesk.

The former official referred to MiCA, a cryptocurrency regulation bill that was previously agreed to by the EU Council and European Parliament in early July.

The document outlines rules that apply to issuers of unsecured cryptoassets, stackablecoins, trading and custodial platforms. It does not, however, affect NFTs. Over the next 18 months, the European Commission may add provisions to it.

    "I am very concerned about the speed of development of the MiCA. It has very broad provisions that in a sense export this approach to crypto-assets to the United States," Giancarlo said.

He urged Congress to "pick up the pace" in shaping the regulatory framework. The U.S. should create its own framework, he said, rather than "accept regulation coming 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 cryptocurrency industry amid Coinbase's conflict with the SEC. The reason for the regulator's displeasure was the bitcoin exchange's plans to launch Lend cryptocurrency savings accounts.

In July, U.S. House of Representatives member Tom Emmer accused the SEC of "unethical treatment" of the crypto industry. In his opinion, the agency uses unfair practices when it comes to digital assets.

Ripple CEO Brad Garlinghouse also criticized the Commission. According to him, the regulator is taking a coercive approach instead of working on clear rules for the industry.

Recall, the CFTC pointed to the SEC's non-transparent approach criticized the agency's method of regulation through coercion.