A commissioner from the U.S. Securities and Exchange Commission (SEC) has called on the United States to adopt a proactive approach to regulating cryptocurrencies, citing the leadership of countries in the Indo-Pacific region such as Japan, Singapore, and Hong Kong. He highlighted that these nations have established clear regulatory frameworks that encourage innovation while safeguarding investors, in contrast to the U.S., where vague guidelines create uncertainty for market participants.
During the AIMA APAC Annual Forum in Hong Kong, SEC Commissioner Mark T. Uyeda compared the regulatory strategies of different countries, particularly in the Indo-Pacific, in relation to cryptocurrencies and fintech. He emphasized that while the U.S. struggles with unclear regulations for digital assets, countries like Japan, Singapore, Hong Kong, and Australia have taken the lead in promoting innovation while protecting investors. Uyeda commended the regulatory progress made in the Indo-Pacific and stated, “I believe there is much to learn from market regulators in the Indo-Pacific region on how to promote these values and objectives.”
The commissioner highlighted how countries in the region have implemented forward-thinking regulations that strike a balance between fostering innovation and ensuring investor protection. For example, Hong Kong has introduced a licensing system for stablecoins, Singapore has allocated $150 million to support fintech, Japan has issued guidelines for supervising crypto exchanges, and Australia has established its own regulatory sandbox.
Uyeda commented, “My impression is that Hong Kong, Singapore, Japan, and Australia, among others, have shown leadership in how to facilitate crypto and fintech capital formation and innovation while promoting investor protection.”
In contrast, Uyeda noted that the SEC’s approach has been less definitive, leaving market participants uncertain about important regulatory matters. He stated, “The SEC could do much more in addressing the key question of whether a crypto asset is a security. Market participants have had to grapple with this analysis and decipher SEC views from various enforcement actions and litigation.” He further added that market participants have expressed concerns about the lack of guidance from the SEC on issues such as determining when a specific crypto offering needs to be regulated as a security offering.
Uyeda urged the SEC to learn from the proactive approach of the Indo-Pacific region and become more transparent and engaged with the crypto industry. He cited fintech events and regulatory sandboxes as examples of how regulators in the region support innovation. In contrast, the U.S. does not have a specific registration form for cryptocurrencies, making the regulatory process challenging for issuers. Uyeda warned against ignoring the growing benefits and risks of cryptocurrencies and financial technology and called for the SEC to take a more active role in addressing these challenges.
