The European Commission’s financial services chief Mairead McGuinness has requested the US authorities to provide a clearer framework for global crypto regulations. Ms.McGuinness held talks with some senior US politicians on a recent trip to Washington, DC.
McGuinness urged the US authorities to provide legal clarity around crypto, cautioning that digital assets may potentially threaten financial stability if left to grow unchecked. The commissioner added that the regulatory framework around crypto needs to be global and not region-specific given the borderless nature of the industry.
She said, “We do need to see other players also legislating,” highlighting the fact that there are countries which are already following EU’s lead on crypto regulation, and “perhaps differently, but with the same objective . . . We need to look at global regulation of crypto.”
Following her request, McGuinness stated that the US authorities are “moving in the same direction” as the EU regarding crypto regulations. She noted that “there’s a lot of concern at a European level as to [what would happen] if crypto were not to be regulated.” In light of this, she added that “there could be — in time, if it grows — financial stability problems. There are also investor issues around the lack of certainty.”
Earlier this month, the EU updated its crypto laws, dubbed the Markets in Crypto Assets Regulation (MiCA). MiCA requires crypto businesses to provide services only after duly registering with authorities to ensure consumer protection and financial stability.
CoinSwitch reported that EU’s updated law also prohibits Russian account holders from accessing their crypto asset wallets, accounts, or custody services, irrespective of the amount of the wallet. This came as a part of the series of sanctions against Russia that were imposed on the country earlier this year following its invasion of Ukraine.