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In a recent speech at the AIMA APAC Annual Forum in Hong Kong, the US SEC’s Commissioner Mark T. Uyeda encouraged the US to be more assertive and communicate a better policy regarding cryptocurrencies.
Drawing attention to the successful efforts made by the countries of the Indo-Pacific region, including Japan, Singapore, and Hong Kong, Uyeda focused on the positive aspects of their approach to developing innovation while maintaining investor protection.
He noted these countries have developed advanced regulatory systems that support fintech and crypto innovation while ensuring market stability.
Uyeda expressed concern over the ambiguous regulatory environment in the US, which, he argues, stifles technological advancement and leaves companies navigating murky waters. He pointed out that the US needs a specific framework for crypto assets, which complicates the process for companies trying to comply with SEC regulations. Uyeda says this uncertainty hampers the potential for capital formation and innovation within the fintech sector.
The SEC Commissioner detailed how other countries have successfully implemented regulatory policies that foster growth and security in the digital asset space. For instance, Hong Kong has established a licensing regime for stablecoins, and Singapore has invested significantly in fintech development.
These regions have adopted regulatory sandboxes that allow startups to experiment under a temporary regulatory reprieve, providing a safe harbor for innovation. By contrast, the U.S. has relied heavily on enforcement actions and court rulings to define its stance on digital assets, which Uyeda criticized as a backward approach.
He advocates for the SEC to offer more definitive guidelines and consider establishing a regulatory sandbox similar to those used in the Indo-Pacific. This could lead to clearer paths for compliance and encourage more companies to innovate and invest in the crypto sector.
Commissioner Uyeda warned that a shift in strategy could allow the US to stay caught up in the global fintech race. He called for the SEC to take a more active role in engaging with the crypto industry and creating comprehensive policies aligning with those of other leading nations. Uyeda believes that adopting elements from the regulatory models of the Indo-Pacific region could lead to a more robust and thriving fintech ecosystem in the US.
