An expert has warned that the US’s lack of regulatory guidance on cryptocurrencies could lead to American FinTech companies struggling and potentially moving out of jurisdictions.
During an interview on CNBC’s Squawk Box, Andrew Durgee, founder of Republic Crypto, stated that the use case of Bitcoin as a store of value continues to get stronger, and predictions centered around the ‘halving’ taking place next summer, which he anticipates will be a global macro financial event.
However, Durgee also acknowledged that the lack of regulatory frameworks, particularly in the US, will create headwinds for Bitcoin, and it’s hard to build a global business within a jurisdiction that refuses to play ball.
He pointed out that in the European market, they have just passed a law called Marketing Crypto Act (MiCA), which is a global first in trying to regulate the space holistically, and it’s really focused on protecting retail investors and creating digital transparency.
Durgee emphasized that everyone, including US companies, citizens, and congressmen, is pushing for regulation. Still, the reality is that the US is falling behind the industry globally.
The Securities and Exchange Commission (SEC) has repeatedly dodged questions about cryptocurrency regulation, which could mean that American FinTech dominance is at risk of struggling and moving outside of jurisdictions.
Coinbase is one example of the difficulties facing the US cryptocurrency industry. The company filed a request to the SEC to provide a ruling on a filing a year ago. It fully anticipates a negative response from the SEC, after which Coinbase will be able to fight that in the courts.
In conclusion, without clear regulatory frameworks, the expert warns that Bitcoin is going to suffer, particularly in the US. Durgee recommends that the US should create a regulatory environment like the European market’s MiCA to protect retail investors and create digital transparency.