In a recent report, the European Parliamentary Research Service (EPRS) emphasized the necessity for stringent oversight from non-European Union regulators to enhance stability and growth in the worldwide cryptocurrency market. This comes in light of the Markets in Crypto-Assets Regulation (MiCA) Act, due for implementation by December 2024.
The report warned about potential risks to the EU’s financial system and autonomy due to dependency on non-EU countries’ policies, particularly where the MiCA Act is applicable. Key concerns included financial stability implications, decreased market appeal, and the mainstream use of stablecoins.
The U.S. regulatory landscape was cited as fragmented, involving state-level and federal stakeholders, thus indirectly affecting legal clarity and regulatory certainty. The report also noted the U.K.’s Financial Services and Markets Act and a study predicting a significant divergence in the identification of crypto-assets between the UK and the EU in the coming years.
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