SEC enforcement may improve Europe’s crypto opportunities, officials suggest.

BRUSSELS, Belgium – The U.S. Securities and Exchange Commission (SEC) is taking action against major crypto exchanges Binance and blockchain, while officials in the European Union are showcasing a new crypto framework that offers more clarity to blockchain innovators. Some in Brussels wonder if Europe’s approach of regulating first and then evaluating the market response could give it an edge over the U.S. Few of the internet giants that dominate the Web2 can call the EU their home. The bloc’s new Markets in Crypto Assets (MiCA) law makes it well-placed to compete with those across the Atlantic. Some argue that the SEC’s regulation by enforcement rather than setting out clear rules is damaging to U.S. competitiveness. The EU has legislated a separate tailor-made regime that better matches what crypto is for. While U.S. authorities let companies do whatever they want until they don’t, then stop them, this approach doesn’t exist in Europe. The recent SEC moves can be an opportunity for Europe. Businesses are considering shifting because of the new framework offered by MiCA, but the law would need to be implemented smartly. National and European regulatory agencies will set out how the rules will work over the next 12-18 months. If the law isn’t applied successfully, the trend can easily be overturned. In France, regulators welcome fleeing U.S. companies, while in the U.S. some argue that Europe’s relative success in legislating for crypto should send chills up the spines of Americans because of the likely boost to innovation.

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Edited by Sandali Handagama.