Brian Brooks says the U.S. “no doubt” lags behind crypto ETFs

Bitfury CEO and former currency acting auditor Brian Brooks (Brian Brooks) hinted that the regulatory environment in the United States may push many cryptocurrency companies abroad and has hindered companies trying to provide various financial products.

Speaking at the hearing on Wednesday The future of digital assets and finance With the House of Representatives Financial Services Committee and Congressman Ted Budd Said He worries that the current law enforcement and regulatory policies of the United States may “force the next generation of financial technology to be created outside of our country.” Brooks said on behalf of Bitfury:

Brooks said: “Some products are legal in other countries, but not here.” “One thing that makes encryption risky is that consumers may not understand the difference between one token and another. So they may want to diversify […] We do not allow this in the United States-we allow it in Canada, we allow it in Germany, Singapore, Portugal and some other places. “He added:

“If you are a developer [exchange-traded funds], There are no fuzzy boundaries, very clear: you can’t do it here, so you have to go abroad. ”

Bitfury CEO Brian Brooks speaks to the House Financial Services Committee on Wednesday

Brooks referred the issue of the lack of exchange-traded funds or ETFs in the United States to the Securities and Exchange Commission.Although the regulator has Recently approved ETF Exposure to Bitcoin (Bitcoin) Futures of investment managers ProShares and Valkyrie, it has not yet given the green light for BTC or other encrypted ETFs.In contrast, many American companies doing business in Canada have already Successfully apply with local regulatory agencies Applicable to ETFs that have direct access to cryptocurrencies.

related: More than 40 digital currency ETFs are waiting for U.S. regulatory approval

However, the former OCC chief said that given the large number of institutions that supervise banks, finance, and digital assets now, the failure of encrypted investment products to be approved is more due to the “fragmented regulatory approach” in the United States. Brooks proposed a solution in which the treatment of traditional financial institutions is roughly the same as that of cryptocurrencies.

“When I hear people talking about the idea that we need an encryption regulator, I would say that we should first set up a regulator for the bank, but we have three,” Brooks said. “The last thing we need to do is to add another regulator to a system that already has dozens of regulators.

“If I am an encrypted lending platform, I should probably be regulated by the FDIC. If I am an encrypted trading platform, I should probably be regulated by the CFTC and the SEC, but somehow we treat encryption because it is new and different from others. Everything is different. I would argue that encryption is just a step function improvement in the system.”

The CEOs of Circle, FTX, Bitfury, Paxos, Stellar Development Foundation, and Coinbase Inc. are currently answering questions from US lawmakers about the state of digital assets in the country. Cointelegraph reported earlier today Representatives of the House of Representatives expressed concern The token project exerts centralized control over the assets of many users.