Florian Glatz, blockchain lawyer, said that when startups are required to seek regulatory approval to innovate, it stifles innovation, like the EU, which could have been a leader in this area in comparison to the U.S. Glatz shared his views in a January 23 post on X.

"The one thing where the EU could’ve been a leader in easily for years might now also go to the US," said Glatz. "When startups need to ask regulators for permission to innovate, no innovation will be produced."

Glatz's comments were made in response to a report by Cointelegraph. The report highlighted BlackRock CEO Larry Fink's call for the U.S. Securities and Exchange Commission (SEC) to expedite approval for the tokenization of bonds and stocks. Fink emphasized blockchain's ability to enhance market transparency and democratize investments. The report also noted that tokenizing traditional assets like bonds and stocks could be advantageous for both cryptocurrencies and decentralized finance (DeFi) platforms. Additionally, it mentioned U.S. Senator Cynthia Lummis's anticipated legislative push on tokenization as she assumes her role as chair of the Senate Banking Subcommittee on Digital Assets. The SEC's leadership changes under President Donald Trump might also affect future regulatory strategies.

Florian Glatz's post | X

During his address at the World Economic Forum on January 23, 2025, President Trump stated that his initiative to unlock U.S. oil and gas resources, aiming to establish the country as "the world capital of artificial intelligence and crypto." Trump also outlined his administration's efforts to implement extensive deregulation.

According to the European Council of the EU, the EU's regulation on markets in crypto-assets (MiCA) establishes a framework for crypto-assets, issuers, and service providers, covering asset-referenced tokens, e-money tokens, and other crypto-assets like utility tokens. Service providers must obtain authorization to operate in the EU, comply with strict regulatory requirements to protect consumers' wallets, and be held liable for lost assets. Existing EU legislation will continue to govern crypto-assets that are already covered.