US is 'unquestionably' behind the curve on crypto ETFs, says Brian Brooks

US is 'unquestionably' behind the curve on crypto ETFs, says Brian Brooks

Bitfury CEO and former Acting Comptroller of the Currency Brian Brooks has hinted the regulatory environment in the United States could drive many crypto firms outside the country, and has already stymied companies attempting to offer a variety of financial products.

Speaking at a Wednesday hearing on Digital Assets and the Future of Finance with the House Committee on Financial Services, congressperson Ted Budd said he feared the current policy of regulation by enforcement in the U.S. could “force the next generation of financial tech to be created outside of our country.” Speaking on behalf of Bitfury, Brooks said:

Our top trading bots

“There are some products that are legal in other countries and are just not legal here,” said Brooks. “One of the things that makes crypto risky is that consumers may not understand the difference between one token and another token, so they may want to diversify [...] we don’t allow that in the United States — we do allow it in Canada, we allow it in Germany, Singapore, Portugal and a number of other places.” He added:

“If you’re a developer of [exchange-traded funds], there’s no fuzzy line, it’s super clear: You cannot do that here, so you have to go abroad.”
US is 'unquestionably' behind the curve on crypto ETFs, says Brian Brooks
Bitfury CEO Brian Brooks addressing the House Committee on Financial Services on Wednesday

Brooks placed the lack of exchange-traded funds, or ETFs, in the U.S. on the Securities and Exchange Commission. Though the regulator has recently approved ETFs with exposure to Bitcoin (BTC) futures from investment managers ProShares and Valkyrie, it has yet to give the green light for BTC or other crypto ETFs. In contrast, many U.S. companies with operations in Canada have successfully applied with local regulators for ETFs with direct exposure to crypto. 

Related: More than 40 digital currency ETFs await US regulatory approval

However, the former OCC head suggested the lack of approval of crypto investment products was more of a result of the United States’ “fragmented approach to regulation,” given the number of bodies overseeing banks, finance and now digital assets. Brooks proposed a solution in which traditional financial institutions would be treated in much the same way as crypto.

“When I hear people talk about the idea that we need one regulator for crypto, I would say we should first have one regulator for banks, but we have three of them,” said Brooks. “The last thing we need to do is add another regulator to a system that’s already got dozens of regulators.

“If I’m a crypto lending platform, I should probably be regulated by the FDIC. If I’m a crypto trading platform, I should probably be regulated by the CFTC and SEC, but somehow we treat crypto, because it’s new, as different than everything else. I’m gonna argue that crypto is just a step function improvement in the system.”

CEOs from Circle, FTX, Bitfury, Paxos, Stellar Development Foundation and Coinbase Inc. are currently fielding questions from U.S. lawmakers on the state of digital assets in the country. Cointelegraph reported earlier on Wednesday that House representatives have expressed concerns over token projects exerting centralized control over many users' assets. 

Continue reading upon Cointelegraph
Turkish ruling party holds meeting in metaverse, talks crypto regulation
Ak Party, Turkey’s governing party, held its first metaverse meeting on Monday wherein it discussed upcoming crypto regulation. The Grand National Assembly...
Billionaire Ray Dalio recommends ‘reasonable’ 1%–2% Bitcoin allocation
Hedge fund manager Ray Dalio remains bullish on Bitcoin (BTC) in 2022, listing three primary reasons why Bitcoin is “impressive.” In a recent interview...
Morgan Stanley increased exposure to Bitcoin, held $300M in Grayscale shares
Investment funds from major U.S. investment bank Morgan Stanley have increased their exposure to Bitcoin through purchases of shares of Grayscale Bitcoin...
El Salvador buys a smokin' hot 420 more Bitcoin
The President of El Salvador, Nayib Bukele tweeted earlier today that his government has taken advantage of the recent Bitcoin price drop and added 420...
Coinbase seeks new exec to debate with policymakers
Coinbase is looking for a new hire to manage the exchange’s sour relationship with policymakers.The United States-based crypto exchange aims to swell its...
IMF issues veiled warning against El Salvador’s Bitcoin law
The International Monetary Fund is warning that some of the consequences of a country adopting Bitcoin as a national currency “could be dire.”According...
UK FCA will spend £11M to warn people about investing in crypto
The United Kingdom’s Financial Conduct Authority (FCA) created an 11 million pound ($15.2 million) digital marketing campaign to warn citizens about the...
Bipartisan bill to study blockchain and crypto passes US House of Representatives
A bipartisan bill that requires the study of blockchain technology and digital tokens passed the House of Representatives on June 22. The “Consumer Safety...
Bank of Japan governor slams Bitcoin, calls BTC a speculative asset
Haruhiko Kuroda, governor of the Bank of Japan, has joined the roll call of central bankers taking aim at Bitcoin (BTC) amid the current volatility.According...
Diem parters with Silvergate bank to launch stablecoin in the US
Facebook-backed digital currency project, the Diem Association, has partnered with cryptocurrency-friendly bank Silvergate to launch a stablecoin pegged...
Major Thai bank experimenting with decentralized finance
Kasikornbank, or KBank, one of Thailand’s largest banks, has begun experimenting with DeFi services as part of its business expansion plan.According to...
Oasis Foundation announces implementation of Tidal DeFi insurance platform
The Oasis Foundation, an offshoot of Oasis Network developers Oasis Labs, announced in a blog post on Friday that decentralized finance (DeFi) insurance...
New petition asks SEC chair nominee Gary Gensler to drop Ripple lawsuit
The Ripple community has launched a new petition to “stop the war” on XRP.Crypto & Policy founder Thomas Hodge has started a Change.org petition directed...
Total crypto market capitalization posts new all-time high above $1.9T
Amid another bullish trend on cryptocurrency markets, total crypto market capitalization has broken a new historical record just unde $2 trillion.The market...
Nasdaq Considers Becoming a Crypto-Exchange
In spite of the fact that so far 2018 has not been the best year for cryptocurrencies, lots of Wall Street bulls, as well as venture capitalist tycoons,...