Brian Brooks stated that many cryptocurrency companies may leave the US due to the existing regulatory framework. He suggests treating cryptocurrencies in the same way as traditional finance.
Bitfury CEO and former director of the Office of the Comptroller of the United States Currency (OCC), Brian Brooks, believes the current regulatory framework in the United States could encourage many cryptocurrency companies to leave the country. Speaking to the U.S. House of Representatives at a hearing on the digital asset and financial outlook, Brooks said:
“There are some products that are legal in other countries but illegal in the US. One factor that makes cryptocurrencies a risky investment is that consumers may not understand the difference between tokens, so they may want to diversify. This is allowed in Canada, Germany, Singapore, Portugal and a number of other countries, ”he said.
In addition, Brooks believes that the lack of exchange-traded funds (ETFs) for cryptocurrencies in the US lies with the US Securities and Exchange Commission (SEC). The former director of the OCC suggested that the lack of approval for such investment products is a result of “a fragmented US approach to regulation” and a large number of authorities overseeing digital assets.
To solve this problem, he suggested treating cryptocurrency financial instruments in the same way as traditional ones. For example, if a company is engaged in cryptocurrency lending, then it should be regulated by the US Federal Deposit Insurance Corporation (FDIC), and if trading in cryptocurrencies, then by the Commodity Futures Trading Commission (CFTC) and the SEC.
The US government is also studying the issue of regulation and how stablecoins work. At the end of November, the chairman of the US Senate Banking Committee, Sherrod Brown, sent Circle, Coinbase, Gemeni, Paxos, Center, TrustToken, Tether and Binance.US to clarify how these cryptocurrencies work.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
