With President Joe Biden’s executive order and the MiCA plan, Mairead McGuinness stated that the US and the EU were both moving forward on comprehensive frameworks for crypto. Mairead McGuinness, the European Commission’s commissioner for financial services, financial stability, and capital markets union, has called on global authorities to collaborate to address possible concerns in the cryptocurrency sector.
McGuinness wrote in a Sunday opinion piece for the political news site The Hill that the European Union and the United States could help lead the world in a regulatory approach for cryptocurrencies that takes into account the benefits of the innovative technology while addressing “significant risks.” The EU commissioner underlined the volatility of particular assets, the risk of insider trading, the likelihood of Russia using cryptocurrency to circumvent sanctions and environmental issues.
“To make rules on crypto fully effective, crypto requires global coordination and joint international principles,” McGuinness said, adding:
” A global agreement on crypto should first enshrine that no product remains unregulated. Second, supervisors should collect and exchange information globally. Third, any agreement must protect retail investors. Fourth, the crypto ecosystem should fully integrate environmental considerations.”
According to the EU commissioner, European authorities have already gone forward in providing a comprehensive framework on crypto with the Markets in Crypto Assets, or MiCA, proposal, which essentially standardizes all laws for crypto service providers across the European Union. She also stated that President Joe Biden’s March executive order “maps the way for US regulation of crypto-assets” by establishing a framework for government entities to handle crypto-related policies and enforcement actions.
“We have no time to lose in managing this transformation for the benefit of investors, businesses and wider society,” McGuinness added.
In addition to its work on MiCA, the European Commission requested input from financial services experts on the future introduction of a digital euro. As of April 29, the European Central Bank has already begun experimental development of a digital euro customer interface. McGuinness stated that the EU commission will “stand ready” to introduce legislation in support of a central bank digital currency.