The financial watchdog in the United States, the Securities and Exchange Commission (SEC), has been making it difficult for US companies from the crypto industry for some time. As a result of the ambiguity regarding crypto regulation and the hostile approach of the SEC, many companies are considering leaving the US. It may present an opportunity for the UK, if we choose wisely.
Currently, Europe seems to be outperforming the United States when it comes to the development of Web3, as the European Parliament recently took another big step towards a clear legislative framework on crypto with the adoption of the Markets in Crypto Assets Regulation (MiCa) legislation.
Crypto regulation in Britain
Financial Conduct Authority (FCA) had indicated that it wanted to work with crypto companies for the development of crypto regulations for the UK. The Secretary of state for the UK Treasury recently announced that the UK wants to introduce the new rules within twelve months.
Polygon Labs, the company behind Polygon (MATIC), said on Monday that it was ‘incredibly encouraged’ to see the UK taking steps to regulate the industry.
In February, Britain’s HM Treasury – the UK government’s arm that sets financial regulations – looked for responses to the Consultation & Call for Evidence on a future regulatory regime for crypto assets. Polygon Labs ‘Chief Policy Officer Rebecca Rettig said on Twitter that the UK’s consultation was’ excellent”.
Brian Quintenz, head of policy at a16z, the crypto-focused division of VC giant Andreessen Horrowitz, also said on Twitter on Monday that they ‘enthusiastically embrace the UK’s approach to a proportionate, agile and flexible regime’. According to az16, the US approach is not something the UK should consider.
American fight against crypto
After the collapse of FTX in November, US regulators, and in particular the SEC, are aggressively chasing large companies within the crypto sector. The SEC has gone after major crypto exchanges such as Kraken, Bittrex and Coinbase for allegedly selling unregistered securities.
Not everyone is happy with this crackdown by the SEC: Republican politicians in particular think that regulators are ensuring that the emerging technology is driven abroad. If that’s the case, the UK seems poised to welcome crypto companies.