Crypto-focused VC CoinFund President Chris Perkins, who is also an adviser to the Commodities and Futures Trade Commission (CFTC), has released a regulatory white paper, warning that the United States is at risk of falling behind in the cryptocurrency industry. Perkins, who is a member of the CFTC’s Global Markets Advisory Committee (GMAC), noted that the US is currently caught in a reactionary wave of regulation following the collapse of the FTX exchange. Meanwhile, other jurisdictions are opening up to the opportunity and moving ahead. Perkins cited the re-opening of Hong Kong to crypto and the arrival of MiCA, the European Union’s recently passed crypto assets regulatory framework, as examples of this trend.
In an interview, Perkins stated, “Other countries are starting to recognize the opportunity and are springing into action. CoinFund just sent a team to Hong Kong. It’s buzzing right now. Government officials are actually going to conferences and encouraging adoption at this point in Hong Kong as they open back up. Meanwhile, MiCA has arrived and the U.K. is springing into action, acknowledging that the Europeans are moving on MiCA.”
Perkins’ white paper offers policymakers 10 recommendations, including the regulation of centralized intermediaries but not decentralized technology, prioritizing sandboxes and safe harbor programs aligned with SEC Commissioner Hester Peirce’s proposals.
The US is currently grappling with a series of regulatory issues related to cryptocurrencies, including the SEC’s ongoing lawsuit against Ripple and a recent crackdown on Binance. Perkins argues that the US risks falling behind in the global crypto race if it fails to take a more proactive approach to regulation.
Perkins’ warning comes at a time when other countries are ramping up their efforts to embrace cryptocurrencies. Hong Kong, for example, recently announced plans to launch a regulatory sandbox for digital assets, while Japan has introduced new rules designed to promote the adoption of cryptocurrencies.
Perkins’ white paper recommends that the US adopt a more flexible approach to regulation, one that is focused on promoting innovation and protecting consumers. He argues that the US should prioritize sandboxes and safe harbor programs that would allow companies to test new products and services without fear of regulatory reprisals.
Perkins also calls for greater collaboration between regulators and the crypto industry. He suggests that regulators should work more closely with companies to develop new standards and best practices for the industry.
In conclusion, Perkins’ white paper is a timely warning to US policymakers that they risk falling behind in the global crypto race if they fail to take a more proactive approach to regulation. Other countries are already moving ahead, and the US risks being left behind if it does not act quickly. Perkins’ recommendations offer a roadmap for US regulators to follow if they want to stay ahead of the curve and promote innovation in the crypto industry.