Hester Peirce, one in every of 5 U.S. Securities and Trade Fee (SEC) commissioners, has warned that the U.S. might fall behind the European Union and the U.Ok. in cryptocurrency regulation if it fails to enact clear guidelines.

In keeping with Pierce, the regulatory framework at the moment being developed in Brussels and London might function a blueprint for lawmakers in Washington.

The U.S. has but to ascertain a complete cryptocurrency regulatory framework, opting as an alternative for a wave of enforcement actions in opposition to unlawful cryptocurrency exercise, led by SEC Chairman Gary Gensler.

Peirce, who has typically disagreed with Gensler on cryptocurrency regulation, recommended that the U.S. ought to create a regulatory framework that balances investor safety with innovation.

The dearth of clear rules within the U.S. has led to issues that the cryptocurrency business might transfer to friendlier abroad jurisdictions.

Peirce acknowledged this, noting that “we’re obsessive about this query of what occurs if individuals take their enterprise elsewhere”. Nonetheless, she believes a sound regulatory framework will encourage innovation and funding in the USA.

Peirce’s feedback come as cryptocurrencies have gotten an more and more necessary a part of the worldwide monetary system. Many specialists imagine that clear and constant rules are needed for the cryptocurrency business to proceed to develop and mature.

U.S. states have taken steps to manage cryptocurrencies within the absence of federal regulation. For instance, the state of New York created the BitLicense, which units out the necessities for corporations eager to function within the state’s cryptocurrency market. Nonetheless, some within the business have criticized BitLicense for being too cumbersome and complex.

Peirce’s name for a transparent regulatory framework for cryptocurrencies within the U.S. was echoed by others within the business.

Many imagine the shortage of clear guidelines has led to uncertainty and confusion, making it troublesome for corporations to do enterprise within the U.S. market.