Ep 3: What's next for blockchain policy in the EU & the US?
Sep 1, 2023
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Lee A. Schneider hosts a discussion with top policy experts in blockchain. They cover achievable policy goals for this year, advocacy efforts with EU regulators, US regulatory responses, stable coin legislation, and the importance of educating policymakers on blockchain technology.
Key policy priorities in the EU for 2023 include finalizing marketing process regulation, AML package, and regulations impacting product developers.
US policymakers are focusing on stablecoin legislation, market structure legislation, and addressing de-banking crypto firms as critical areas.
AML regulations, level two legislation, and potential DeFi regulation are ongoing efforts in Europe to shape regulatory frameworks and address AML challenges.
Policymakers in the US are advised to avoid overreacting to recent events, prioritize comprehensive learning about blockchain technology, and draft sound legislation.
Global coordination is essential to align regulatory standards for the blockchain sector, emphasizing the significance of international cooperation and preventing regulatory barriers.
Deep dives
Focus on Policy Priorities in the EU
In the EU, the focus for 2023 revolves around key policy priorities such as the final voting on the marketing process regulation and the issuance of regulatory guidance and standards, the AML package including regulations, directives, and agency regulations, and a mix of regulations impacting product developers such as the data act, product liability directive, and cyber resilience act.
US Policy Priorities: Stablecoin Legislation and Market Structure
In the US, policymakers are concentrating on critical areas like stablecoin legislation to establish a federal regulatory framework, market structure legislation to determine appropriate regulatory agencies and asset classifications, and addressing the issue of de-banking crypto firms. Keeping a watchful eye on stablecoin regulation and addressing market infrastructure are key priorities.
EU Policy Priorities: AML Regulations and DeFi Oversight
In Europe, ongoing efforts include focusing on AML regulations to introduce KYC requirements for crypto markets, collaborating on level two legislation for defining regulatory frameworks, and discussing potential DeFi regulation. Addressing AML challenges, shaping regulatory frameworks, and understanding DeFi regulation are at the forefront of policy priorities in Europe.
US Recommendation: Avoid Overreaction and Tet: Regulation
US policymakers are advised to avoid overreacting to recent events and aim for a deep understanding of technology before drafting regulations. Emphasizing the importance of ensuring sound legislation, avoiding hasty reactions, and prioritizing comprehensive learning about blockchain technology and associated risks for effective policy-making.
EU Policy Recommendation: Clarify Data Act Scope
Policy makers in the EU are recommended to clarify that the requirements of the data act are not intended for every smart contract usage in Europe. Addressing this clarification would offer certainty to the blockchain industry, reassuring compliance with specific requirements while excluding widespread application of regulations to all smart contracts.
Global Collaboration for Common Regulatory Approaches
A key theme across regions is the necessity for global coordination to align regulatory standards and frameworks for the blockchain sector. Emphasizing the significance of international cooperation to prevent regulatory barriers and support innovation across borders amidst diverse policy objectives.
Importance of Education and Misconception Resolution
Highlighting the significance of educating policymakers and the public to dispel misconceptions about blockchain technology. Encouraging a deep understanding of the technology, addressing misconceptions, and focusing on risk assessment are crucial for informed decision-making and policy development.
Emphasis on Sustainable Growth and Terminology Clarity
Advocating for sustainable growth initiatives and clarifying misconceptions related to energy consumption in the blockchain sector. Reflecting on the industry's sustainability efforts, promoting policy measures to support climate objectives, and ensuring accurate terminology usage for aligned understanding and innovative solutions.
Common Understanding and Global Adoption of Best Practices
Promoting a shared understanding of blockchain technology and global adoption of common best practices for regulatory development. Encouraging inclusive dialogue between regions, fostering standardized approaches to policy-making, and prioritizing a collaborative regulatory ecosystem for sustainable industry growth.
Lee A. Schneider, General Counsel at Ava Labs and Co-founder of Owl Explains, brings together top policy experts in blockchain. Joining the conversation are Alison Mangiero of the Proof of Stake Alliance, Kristin Smith from the Blockchain Association, Marina Markezic of the European Group Initiative, and Tommaso Astazi from Blockchain for Europe. They delve into the future of blockchain and crypto policy, discussing achievable policy goals for this year. Tune in for a dynamic dialogue at the forefront of blockchain innovation and regulation.
