Patrick Hansen, a cryptocurrency startup advisor and European policy expert, made predictions about the timeline of two key EU crypto laws.
Cryptocurrency regulations may be approved on this date
Hansen reveals that the two landmark crypto regulations, Markets in Crypto Assets (MiCA) and Funds Transfer Regulation (TFR), will pass between December 2022 and January 2023. On the other hand, the rapid regulation of the EU is causing concern among US regulators. Hansen says the scope and speed of these regulations are of interest to the United States and may force them to act more quickly.
Cryptocurrency regulations in Europe
MiCA aims to protect customers and investors of crypto companies. It also sets liabilities for issuers if users lose cryptocurrencies. MiCA also focuses on stablecoin regulations. Accordingly, issuers must maintain appropriate reserves and meet liquidity requirements at the time of withdrawal. TFR, on the other hand, creates money laundering regulations. It also addresses cryptocurrency laundering issues.
Hansen reveals that the European Union is currently working on other crypto initiatives with high impact. These include more money laundering regulations, DeFi report, NFT report, DeFi audit pilot and Digital Euro Legislation.
Why do EU laws worry the US?
The US is concerned about the scope and pace with which Europe is discussing crypto regulations. Hansen explained that while the deadline is still undecided, regulations could be voted on by January of next year. He also adds that voting is just a formality at this point, as all arrangements have been agreed upon. The smaller regulation, the TFR, is expected to come into effect much earlier.
US lawmakers are also pushing crypto regulation. Support for a regulatory crypto framework is bicameral and bicameral in the US. However, there is still no deadline for any major action. CFTC official Caroline D Pham says the United States should try to be a rule-maker, not a rule-maker.
Intense pressure for cryptocurrency regulations in the US
In recent developments from the US, the CFTC has introduced a bill to become the primary regulatory body for cryptocurrencies. Thus, cryptocurrency exchanges and consumers will be directly responsible for their risks. According to Jake Chervinsky, head of policy at the Blockchain Association, the bill defines crypto exchanges as “digital commodity platforms.” This definition directly contradicts statements used by SEC chairman Gary Gensler. Gensler also recently forced crypto exchanges to register with the SEC.
On the other hand, Europe’s new cryptocurrency rules focus on transparency. The new MiCA rules require crypto players to inform consumers about the risks, costs and fees associated with crypto.
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