HomeCryptoCrypto ETF managers may flee the US

Crypto ETF managers may flee the US

According to Bitfury CEO Brian Brooks, US companies that want to create crypto ETFs could go abroad to do so. 

The US approach to crypto ETFs

Brooks took part in a hearing on digital assets yesterday at the House Committee on Financial Services. 

The issue of the US regulatory system’s lack of competitiveness with respect to crypto ETFs was actually raised by Congressman Ted Budd, who said he feared that the next generation of financial technologies might be created outside of the US. 

Brooks made it clear that he believes ETF developers are already being forced to go abroad, because it is effectively impossible in the US. 

To be fair, crypto ETFs have already been approved in the US, but they are actually funds that are not collateralized in tokens, but in futures contracts on token prices. 

In contrast, many foreign countries, starting with neighbouring Canada, have already approved token-collateralized ETFs, which is very much in contrast to the alleged technological and financial superiority of the US. 

Actually, it seems that in this specific case the US has now fallen behind, and must decide whether to start chasing the others, or stay out of this market. 

However, it is worth noting that US ETFs on Bitcoin futures have been a huge success, so the problem may actually be less serious than it seems. 

ETF crypto USA
In the US, ETFs with direct exposure to cryptocurrencies have not been approved

The risk of falling behind

However, Brooks points out that many crypto companies are already having problems operating in the US, while in other countries such problems are often not encountered. Hence, the problem is not only related to token-collateralized ETFs, but to an entire system that risks falling behind due to old regulations that cannot be updated to the new market reality. 

Brooks even points out that there are some financial products that are legal in other countries, while in the US they simply are not. This would cause an underlying problem, due to the fact that one of the things that makes cryptocurrencies risky is that consumers don’t always understand the difference between one token and another, wanting to diversify as a result. In the US this is not very easy, and not completely allowed, while for example in Canada, Germany, Singapore or Portugal it is. 

These words spoken in front of the House Committee on Financial Services of the US Congress could lead some American politicians to start suspecting that the country is being overtaken by others in one of the areas historically most favourable to the US, namely financial innovation. 

The question is therefore still open, although it could be a long time coming, given the average timing of politics. 

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".
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