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The European Union (EU) has made laudable strides in developing crypto regulatory frameworks. With US regulators still stumbling around formulating crypto regulations, they clearly need to pick up valuable lessons from their counterparts across the Atlantic.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/10038cae9dc24494ad1f9a9ec25ff8fc.png" />1. Accountability for Crypto Service ProvidersMiCA places greater responsibility on crypto service providers, imposing stricter rules and stiffer penalties in cases where customers suffer losses due to their actions. This is a good move because, in the past, exchanges and wallets often got away with problems caused by hacks, bankruptcies, rug pulls, etc.Comparatively, the US has often employed &#34;regulation by enforcement,&#34; where regulators take action against entities after the fact, creating a sense of uncertainty within the industry. The MiCA framework, with its preemptive accountability measures, offers a more stable and predictable regulatory environment.2. Taking on Market ManipulationMiCA&#39;s explicit aim to prevent market manipulation sends a clear message to the global crypto community. While most market manipulation occurs beyond the EU&#39;s jurisdiction, this commitment establishes a precedent for vigilant regulation.While US regulators have taken steps to combat market manipulation, the &#34;regulation-by-enforcement&#34; style they have adopted and the alleged &#34;regulatory power struggle&#34; between agencies like the SEC and the CFTC have led to uncertainty and a lack of a coordinated approach. The EU&#39;s unified intent in this regard provides a model for the US to streamline its efforts, ensuring that the crypto industry is not caught in a regulatory tug-of-war.3. What about DeFi and CBDCs?MiCA&#39;s exclusion of decentralized finance (DeFi) and central bank digital currencies (CBDCs) from its scope demonstrates an understanding of the evolving crypto landscape.While some might view this as a limitation, it acknowledges the unique nature of DeFi and CBDCs. These sectors are gaining traction rapidly and pose distinct challenges and opportunities. As such, they must be extensively studied before fitting regulatory frameworks can be designed for them.The US approach has often been reactive, with regulators struggling to classify and regulate DeFi projects. MiCA&#39;s recognition of this evolving sector highlights the importance of a proactive stance in addressing emerging technologies within the crypto sphere.4. Caution in a Fast-Moving WorldMiCA&#39;s requirement for official approval before launching tokens or liquidity reflects a degree of caution. While this approach may potentially slow down innovation, its primary goal is to ensure project integrity. However, it does raise questions about the efficiency and agility of regulatory processes. In contrast, the US has faced criticism for stifling innovation through a complex and often cumbersome approval process. The US can learn from MiCA by seeking a balance between fostering innovation and safeguarding investor protection.5. Lessons from FragmentationIn the EU, different courts apply different rules, making it challenging to predict the outcomes of future court cases. Conversely, the US benefits from a more unified legal framework, providing predictability in regulatory decisions. Nonetheless, the US should not underestimate the advantages of coordination and harmonization evident in MiCA. By establishing clear regulatory guidelines and minimizing regulatory infighting, the US can cement its leadership in the global crypto arena.The Road Ahead for the US.As the crypto industry continues to evolve, the United States stands at a critical juncture. The US has made mistakes, from regulation by enforcement to regulatory infighting, that have hampered the industry&#39;s growth.By drawing insights from the EU&#39;s MiCA framework, the US can chart a more balanced and effective path forward in crypto regulation. The US has the opportunity to compose its own crypto-regulatory masterpiece that resonates with innovation, responsibility, and adaptability while avoiding past mistakes. We can only hope they take the hint.Catch up on our published articles for the week!NEWS● Bybit Explores Options to Continue UK Operations Amidst New Regulations &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/bybit-explores-options-to-continue-uk-operations-amidst-new-regulations/" rel="noopener noreferrer nofollow"> Read more</a>.●  SWIFT’s CBDC Interoperability Solution Enters Crucial Beta Testing Stage &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/swifts-cbdc-interoperability-solution-enters-crucial-beta-testing-stage/" rel="noopener noreferrer nofollow"> Read more</a>.●  Singapore Central Bank Bans 3AC Founders Zhu Su and Kyle Davies Over Securities Law Violations &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/singapore-central-bank-bans-3ac-founders-zhu-su-and-kyle-davies-over-securities-law-violations/" rel="noopener noreferrer nofollow"> Read more</a>.●  Circle Partners With Grab to Bring Blockchain-Powered Wallets to Singapore Users &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/circle-partners-with-grab-to-bring-blockchain-powered-wallets-to-singapore-users/" rel="noopener noreferrer nofollow"> Read more</a>.●  Hong Kong’s Securities and Futures Commission Issues Public Warning About Virtual Asset Platform JPEX &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/hong-kongs-securities-and-futures-commission-issues-public-warning-about-virtual-asset-platform-jpex/" rel="noopener noreferrer nofollow"> Read more</a>.●  Telegram Partners With TON to Introduce Self-Custodial Crypto Wallet for Its Users &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/telegram-partners-with-ton-to-introduce-self-custodial-crypto-wallet-for-its-users/" rel="noopener noreferrer nofollow"> Read more</a>.●  PayPal Expands Crypto Services with On and Off Ramps Integration &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/paypal-expands-crypto-services-with-on-and-off-ramps-integration/" rel="noopener noreferrer nofollow"> Read more</a>.●  BIS, Hong Kong, and Israel Publish Findings from CBDC Experiment, Project Sela &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/bis-hong-kong-and-israel-publish-findings-from-cbdc-experiment-project-sela/" rel="noopener noreferrer nofollow"> Read more</a>.●  Animoca Brands Raise $20 Million to Accelerate the Development of the “Mocaverse” &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/animoca-brands-raise-20-million-to-accelerate-the-development-of-the-mocaverse/" rel="noopener noreferrer nofollow"> Read more</a>.●  FTX’s Lawsuit Is Filled “Unsubstantiated Claims”, LayerZero Labs CEO Responds &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/ftxs-lawsuit-is-filled-unsubstantiated-claims-layerzero-labs-ceo-responds/" rel="noopener noreferrer nofollow"> Read more</a>.ARTICLES●  Stablecoin Legislation: Impact on the Crypto Space &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/stablecoin-legislation-impact-on-the-crypto-space/" rel="noopener noreferrer nofollow"> Learn more.</a>●  Big Companies You Don’t Know Are Using Blockchain Technology &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/big-companies-you-dont-know-are-using-blockchain-technology/" rel="noopener noreferrer nofollow"> Learn more.</a>●  C&#43;Charge: A Breakthrough in Peer-to-Peer Payment Solutions for EV Charging Stations &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/ccharge-a-breakthrough-in-peer-to-peer-payment-solutions-for-ev-charging-stations/" rel="noopener noreferrer nofollow"> Learn more</a>.●  How Does Mainnet Launch Influence the Price of Tokens? &gt;&gt;&gt;<a href="https://defi-planet.com/2023/09/how-does-mainnet-launch-influence-the-price-of-tokens/" rel="noopener noreferrer nofollow"> Learn more</a>.Spotlight on interesting projectsTezoro<a href="https://tezoro.io/" rel="noopener noreferrer nofollow">Tezoro</a> is a non-custodial service that allows you to reduce the risk of losing your crypto by ~100 times by creating a backup: a smart contract that can withdraw crypto from your wallet and transfer it to a backup address even if you&#39;ve already lost access to your wallet or died.Tezoro is a non-custodial service. It helps you to prepare your backup, and you confirm it via your MetaMask and deploy it directly to the blockchain.Nobody, including Tezoro, can change the amount or replace the backup address. The only thing you allow it to do is initiate the transfer at the moment you need it.For more information, visit <a href="https://tezoro.io/" rel="noopener noreferrer nofollow">https://tezoro.io/</a><img src="https://academy-public.coinmarketcap.com/optimized-uploads/682932207e8042abb1937066b343d363.jpeg" />If you want more content like this, visit <a href="https://defi-planet.com/" rel="noopener noreferrer nofollow">DeFi Planet</a> and follow us on <a href="https://twitter.com/PlanetDefi" rel="noopener noreferrer nofollow">Twitter</a>, <a href="https://www.linkedin.com/company/defi-planet/" rel="noopener noreferrer nofollow">LinkedIn</a>, <a href="https://www.facebook.com/DeFi-Planet-129907662611402" rel="noopener noreferrer nofollow">Facebook</a>, <a href="https://www.instagram.com/defi.planet/" rel="noopener noreferrer nofollow">Instagram</a>, <a href="https://medium.com/&#64;defi-planet" rel="noopener noreferrer nofollow">Medium</a>. and <a href="https://coinmarketcap.com/community/profile/DeFiPlanet/" rel="noopener noreferrer nofollow">CoinMarketCap Community</a>.

Weekly Round-Up #67 | Learning from the EU: A Better Path for US Crypto Regulation 🌍

DeFi Planet

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