SEC official urges US to follow Indo-Pacific in crypto regulation

SEC Commissioner Mark T. Uyeda has called for the U.S. to adopt a more proactive approach to cryptocurrency regulation, highlighting the advancements made by Indo-Pacific nations like Japan, Singapore, Hong Kong, and Australia.  

Speaking at the AIMA APAC Annual Forum in Hong Kong, Uyeda emphasised that these countries have established clear regulatory frameworks that promote innovation while protecting investors, in contrast to the U.S., where unclear guidelines have left market participants in uncertainty.  

Uyeda praised the regulatory progress in the Indo-Pacific, noting that nations such as Japan and Singapore have taken leadership roles in developing policies that support both fintech and digital assets.  

For example, Japan has issued guidelines for crypto exchange supervision, while Singapore has committed $150 million to fintech promotion.  

Hong Kong’s recent introduction of a stablecoin licensing regime and Australia’s use of regulatory sandboxes further exemplify this forward-thinking approach.  

“My impression is that Hong Kong, Singapore, Japan, and Australia, among others, have shown leadership in facilitating crypto and fintech capital formation and innovation while promoting investor protection,” Uyeda remarked.  

In contrast, the U.S. has lagged behind, leaving crypto companies to navigate a regulatory landscape filled with uncertainty.  

Uyeda noted that the SEC’s lack of clear guidance on whether certain crypto assets are considered securities has forced market participants to interpret regulations based on enforcement actions and court rulings.  

“Market participants have been forced to struggle with this analysis,” he said, calling for more transparent and definitive rules from the SEC.  

Uyeda urged the SEC to learn from the Indo-Pacific’s regulatory advancements and engage more actively with the crypto industry.  

He warned that the U.S. cannot ignore the growing benefits and risks of crypto and financial technology, stressing the need for the SEC to take a more active role in shaping the future of the digital asset space.