Europe Entices Crypto Firms as U.S. Regulatory Crackdown Intensifies

Europe is gradually positioning itself as a welcoming jurisdiction for crypto companies. Meanwhile, the screws are tightening on the other side of the pond as organizations take over because of a lack of crypto regulations.

On Feb. 26, international politics outlet Politico reported that European Union officials are beginning to pitch the region as a welcoming place for crypto businesses to set up shop.

In addition, he noted that Congress is far from drafting or rolling out laws for crypto assets, adding:

“Industry leaders are increasingly making the trans-Atlantic juxtaposition to argue for clearer regulations as U.S. agencies begin to enforce decades-old rules for trading and banking in the crypto world.”

Lawyer James Finlan highlighted that Ripple could become a prime example. Should the SEC win its case against the fintech firm this year, the future for crypto in the United States would be very grim

Europe and Asia forward regarding cryptography regulations.

According to Stefan Berger, the German legislator who steered the European regulation of cryptography, "we will have the best framework in the world in which businesses can grow.”

"We will have all you need for a viable marketplace," he added.

However, digital asset markets () of crypto regulation should not be deployed throughout the EU before 2024.

U.S. politicians are still profoundly divided as to how the industry should be regulated. At the extreme, there are people like Elizabeth Warren and Gary Gensler who are trying to destroy the industry. While on the other side are proactive politicians such as Tom Emmer and Cynthia Lummis that want to embrace it.

Senator Lummis said, "The EU is waiting. We're looking at Switzerland. We're looking at Australia. The United Kingdom is before us.

In addition, Susan Friedman, Ripple's International Policy Advisor, acknowledged that Europe is significantly ahead of the US. 'We anticipate that Europe will become a natural crossroads for responsible participants,' she said.

Additionally, in the Far East, Hong Kong is gearing up to become the Asian crypto hub alongside Singapore which is already well established.

Bombardment with crypto carpets.

Kristin Smith, CEO of the Blockchain Association, echoed the sentiment that regulatory agencies in the United States are operating outside their borders and targeting cryptography.

“We feel a moment of crypto carpet bombardment, where they seem to be trying to throw everything they can - or potentially overstepping their authority - and we think it's shortsighted."

At the end of the day, Uncle Sam quickly fell through the cracks around the world. Unless Congress stops stalling on cryptography rules, the damage could be overwhelming. This might leave the US financial industry in the age of metaphoric darkness.