A U.S. Securities and Exchange Commission (SEC) commissioner has called for a more proactive approach to cryptocurrency regulation, pointing to the leadership of Indo-Pacific nations such as Japan, Singapore, and Hong Kong.
He emphasized that these countries have established clear regulatory frameworks that encourage innovation while ensuring investor protection, unlike the U.S., where ambiguous guidelines have left market participants in a state of uncertainty.
During the AIMA APAC Annual Forum in Hong Kong, SEC Commissioner Mark T. Uyeda compared the U.S. regulatory approach to those of other Indo-Pacific countries. He noted that while the U.S. struggles with unclear digital asset regulations, nations in the Indo-Pacific have taken decisive steps to foster both innovation and investor confidence.
Uyeda praised these countries for crafting forward-thinking regulations, stating, “There is much to learn from market regulators in the Indo-Pacific on how to promote these values and objectives.”
Uyeda highlighted examples of regulatory progress in the region. Hong Kong, for instance, has introduced a licensing regime for stablecoins, Singapore has invested $150 million to boost fintech innovation, Japan has issued comprehensive guidelines for cryptocurrency exchange supervision, and Australia has created a regulatory sandbox for testing new fintech products.
These initiatives, he said, strike a balance between technological progress and safeguarding investor interests.
He further explained that the leadership shown by Indo-Pacific countries in fintech and crypto regulation serves as a model for how capital formation and innovation can thrive without sacrificing investor protection. In contrast, U.S. companies are often left to navigate the uncertainties of crypto regulation on their own due to the SEC’s lack of clear guidance, especially when it comes to determining whether a crypto asset is a security.
Uyeda expressed concern over the SEC’s approach, noting that U.S. market participants have had to rely on court rulings and settled enforcement actions to understand the SEC’s stance on key issues. “The SEC has not provided sufficient guidance on when a particular crypto offering should be regulated as a security,” Uyeda said. This uncertainty has made it difficult for U.S. companies to operate within the regulatory framework.
In comparison, Uyeda argued, the SEC’s regulatory response is falling behind the more advanced approaches seen in the Indo-Pacific region.
He urged the SEC to become more transparent and engaged with the crypto industry, learning from the proactive stance taken by countries like Japan, Singapore, and Hong Kong. Regulatory sandboxes and fintech events in these countries have provided valuable opportunities for collaboration between regulators and innovators, Uyeda noted.
Finally, Uyeda warned that the U.S. cannot afford to “bury our heads in the sand” when it comes to the growing influence of cryptocurrency and financial technology. He called on the SEC to take a more active role in addressing the challenges of regulating the rapidly evolving digital asset space, lest the U.S. fall further behind in the global fintech race.