The US Securities and Exchange Commission Republican leader, Hester Peirce, believes that Europe’s recent legislation to regulate cryptocurrency could serve as a model for the US. Peirce, who is also known as “Crypto Mom,” spoke at a Financial Times event, where she praised the Markets in Crypto Assets law (MiCA) passed by the European Union in April.
MiCA is specifically designed to establish rules for cryptocurrency, ensuring that all transfers can be traced and suspicious transactions are blocked. The law applies to transactions over €1000, from self-hosted wallets, which interact with hosted wallets. However, the regulation does not apply to person-to-person transfers conducted without a provider or among providers acting on their own behalf.
US Congress Working on Comprehensive Crypto Legislation
Peirce also expressed her lack of optimism regarding the current regulatory system in the US but stated that Congress is working on comprehensive legislation to oversee the cryptocurrency sector. The House Financial Services Committee and House Agriculture Committee are due to introduce legislation to regulate the industry in the next month.
Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., are also planning to introduce a revised version of the Responsible Innovation Act this spring. The bill aims to define tokens more specifically and clarify definitions, with oversight of popular cryptocurrencies delegated to the Commodity Futures Trading Commission. The lawmakers will also address stablecoins and taxes.
The US lawmakers have regularly held hearings to discuss cryptocurrency, with a hearing scheduled for May 18 in the House Financial Services Committee to discuss stablecoin legislation. Although several bills have been proposed, lawmakers have not been able to pass comprehensive legislation on crypto.