The U.S. Has No Crypto Regs to Export

The U.S. is risking its role as exporter of regs to the world’s financial markets by lagging behind in regulating blockchain-based finance, witnesses warned Senators.

The United States is at risk of taking a back seat to the EU as an innovator in financial services regulations academics warned lawmakers on Tuesday. The warning came at a hearing of the Senate Banking Committee on regulating cryptocurrency markets.

The United States has long been an exporter of financial regulatory models to the rest of the world, pointed out Yesha Yadav, an associate dean and law professor at Vanderbilt Law School, in the case of digital assets regulatory frameworks it is quickly falling behind the rest of the world.

“We have been incredibly powerful exporters of our financial markets regulation abroad, and this is so important because it means that other countries have adopted key principles that we use in our markets to make our markets work and make our markets safe,” she said.

“In the case of digital asset regulation, unfortunately, we really do not have anything to export,” she added.