Crossroads – It is perhaps at this precise point that the USA at this moment. Is it necessary over-regulate the crypto sector through its armed wing that is the DRY (Securities Exchange Commission)… Or concessions to enable the creation of a regulatory infrastructure suitable for the development of this new finance ?
Crypto and web 3: the USA regulates, Asia feasts
Embracing innovation at a time when no one still believes in it: this is the choice made by the USA at the end of the 90s with the internet. Good for them when we see the result today. And these are also the arguments put forward by Brad Garlinghouse, CEO of Ripplewhose lawsuit against the SEC is ongoing:
“Just look at the geopolitical benefits for the United States: having today’s Amazons and Googles based and established in the United States”
It is clear that the USA has won the technological battle of web 2. But will they win the web 3 one ? A field carrying a whole new freer financewhich tickles the absolute monetary power of their precious greenback, the dollar… All the more so in a world where certain powers, on the contrary, show a open-mindedness much larger and accommodate entrepreneurs of this new finance from web 3. This is notably the case of Australia, Japan, Singapore, England and even Switzerland.
“There are many countries that have taken the time to reflect in order to build clear regulations. »
Brad Garlinghouse
According to Garlinghouse, part of the crypto industry has already started to extract itself from US territory in order to join nations with a clear framework. Overall, a trend is emerging. And in this one, a new asian impetus towards these technologies of the future is taking root, while USA and theEurope engage in the construction of regulations as vague as they are restrictive.
Europe, meanwhile, is not free from flaws either, although, via regulation Mica (Market in Crypto Assets) efforts are being made to establish this clear frame if necessary… provided that it is appropriate and fair. And that’s the whole point, because the excesses are easy, as in France, with the attempt to scuttling of our startups last January and which results in a enhanced PSAN registration that many of them will not have the means to respect. Our brains will go elsewhere once again, like with the internet, since our politicians do not want to support them.
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On the other hand, the issues behind the lawsuit between Ripple and the SEC are gigantic. For the development of the crypto ecosystem in the USA of course, but indirectly in the world as well. Indeed, this will be used to qualify cryptocurrencies as actions (securities)of raw materials (commodities) or…something else. However, the regulations which apply according to the pronounced status are completely different.
” [Lorsque] the SEC sue Ripple, it’s not just about Ripple and [son token] the XRP. This concerns the whole industry and how the SEC will be able to attack it [dans les années à venir]. »
Brad Garlinghouse
I’decentralized aspect of the sector is not compatible with such a qualifier. Viewing cryptos as stocks would lead to restrictions that would starve the ecosystem of innovation altogether. It seems illusory to want to impose an already existing regulatory framework on all new digital objects. UFOs which, for many, while not akin to commodities like Bitcoin, are nevertheless quite another thing.
A dedicated, specific, clear regulatory framework must be built in order to offer businesses in the sector the means to develop. By preserving safety of course, but not at the expense of innovation. By wanting to over-regulate, the risk for the USA is to drive away startups that wish to innovate. And this, for the benefit of their Asian adversaries, who are more understanding, for example. A valid warning also for Europe, by the way.
However, as Brad Garlinghouse explains, this technological battle has strong geostrategic stakes. Cryptos are part of a global chessboard. A game of chess in which every move is decisive and backtracking is impossible. The years to come will be those of the registration in time of regulatory policies, favorable or unfavorable to cryptocurrencies. And these might well define the technological and geostrategic powers of tomorrow. Who do you think will win the game?
The time for regulation has come, and with it the time for uncertainty. Don’t wait any longer to prepare for the future, register now on eToro and start getting acquainted with the exciting world of blockchain technology (commercial link).