J.W. Verret, a law professor at George Mason University, stated that jurisdictions including the European Union (EU) and Singapore have implemented regulations for the digital asset industry that are more "rational" and "thoughtful" than the U.S. approach to regulating the industry. Verret shared his statement with Federal Newswire during a July 2 interview.
"I think what the EU, UK, Japan, and Singapore have done are, in their own ways, more rational, more thoughtful than the U.S," said Verret. "I don't agree with every aspect of each of those. I have concerns about aspects of each of those regimes, but each one of them is more thoughtful than what we're doing in the United States."
According to lawmakers including U.S. Sen. Cynthia Lummis (R-Wyo.), the U.S. Securities and Exchange Commission's (SEC) "regulation by enforcement" approach to the crypto industry has been criticized. They warn that failure to implement comprehensive regulations for the industry will result in innovation moving offshore. "The SEC has failed to provide a path for digital asset exchanges to register, and even worse has failed to provide adequate legal guidance on what differentiates a security from a commodity," Lummis said in a post on X.
Christian Catalini, founder of the MIT Cryptoeconomics Lab, told Federal Newswire in March that the lack of regulatory certainty in the U.S. is driving innovation offshore, Federal Newswire reported. Catalini said the "first step" for the U.S. should be "to provide greater regulatory clarity for the entrepreneurs and startups building in this space. Right now, the lack of regulatory clarity is pushing teams abroad."
As the EU rolls out its Markets in Crypto-Assets (MiCA) legislation, a regulatory framework for digital assets, a French regulator has invited American crypto industry participants to come to France if they want legal certainty, CoinDesk reported. Benoît de Juvigny, Secretary General of the Autorité des marchés financiers (AMF), said the French people are "proud to be pioneers" in the crypto industry and added, "If American players want to benefit, in the very short term, from the French regime, and from the start of 2025 from European arrangements, clearly they are welcome." Crypto companies including Bittrex have shut down their U.S. operations, citing a regulatory environment that combines active enforcement with an absence of comprehensive regulations.
In Asia, Hong Kong and Singapore are attracting crypto businesses while Thailand and Indonesia allow crypto to be traded as a commodity but have banned it as a payment method, CNBC reported. "Cryptocurrency regulations in Asia have moved along faster and with more clarity — green light or red light — than in the U.S.," according to Ben Charoenwong, an assistant professor of finance at the National University of Singapore Business School.
Verret teaches Banking, Securities and Corporation Law at George Mason University's Antonin Scalia Law School, according to the university's website. He has previously served on the Investor Advisory Committee of the SEC and as Independent Chairman of the Board of Directors of domestic credit rating firm Egan-Jones Ratings. He has also served as Senior Counsel and Chief Economist for the U.S. House Financial Services Committee.
