• This article discusses how the United States can learn from other countries’ crypto regulations.
• It highlights 11 key lessons U.S. regulators should take away, from accepting cryptocurrencies as genuine goods to considering a “sandbox” approach.
• The article also suggests that information dissemination should be a priority for U.S. regulatory bodies in order to provide investor protections and reduce risk.
What Can the US Learn From Other Nations’ Crypto Regulations?
The United States might be late to the game when it comes to creating effective laws and guidelines for cryptocurrency, but this doesn’t mean they have to start from scratch. 11 members of Cointelegraph Innovation Circle have discussed some of the most important lessons U.S regulators can learn from other countries which have forged ahead when it comes crypto regulation, such as Indonesia and Turkey.
Accept Cryptocurrencies as Genuine Goods
Innovation and investor safety are promoted by other countries’ acceptance of cryptocurrencies as a genuine good when there are clear regulations and consumer protection in place – something the US could benefit from adopting too.
Consider a ‘Sandbox’ Approach
The UK and Singapore have already adopted what is known as a “sandbox” approach- where firms are allowed to test out innovative fintech and blockchain products live with some leniency on regulation, striking a balance between growth and stability- something US regulators could look into implementing too.
Focus on Disseminating Information
U.S regulators need to focus on information dissemination around potential sales of new tokens or projects in order to lessen risk and create investor protections, much like why the Securities and Exchange Commission was created back in 1930s- pre internet era-to counter bad actors raising capital for scams.
Recognize Crypto as Different Asset Class
Regulators should recognize cryptocurrency as its own unique asset class instead of applying existing fiat regulations which may not always work since crypto is so different to traditional financial systems, such as having decentralized networks rather than centralized ones that require different regulatory measures when it comes to protecting investors interests etc…