Mairead McGuinness, the commissioner for financial services, financial stability, and capital markets union at the European Commission, reportedly urged collaboration to deal with risks associated with the crypto market. 

Specifically, McGuinness reportedly claimed that the European Union and America could take the pioneering role globally, in terms of a regulatory approach for crypto, which takes into consideration the perks of innovative techs, while dealing with “significant risks.” 

The EU commissioner reportedly referred to the volatility of a few particular assets, the risk of insider trading, and the possibility of crypto utilized by Russia to steer clear of sanctions and environmental issues.

“A global agreement on crypto should first enshrine that no product remains unregulated. Second, supervisors should collect and exchange information globally. Third, any agreement must protect retail investors. Fourth, the crypto ecosystem should fully integrate environmental considerations.”

Per McGuinness, in order to achieve a full effect regarding crypto regulations, coordination on an international scale “and joint international principles” need to be present. 

As suggested by the EU commissioner, regulators in the EU had already taken the next step in coming up with a comprehensive framework for crypto via the release of the Markets in Crypto Assets (MiCA) proposal, which aims to standardize every legislation for crypto service providers across the European Union. 

She further disclosed that the executive order signed by President Joe Biden in March “charts the way for U.S. regulation of crypto-assets” via establishing a framework dedicated to authoritative agencies, to deal with crypto-associated policies and enforcement actions.

“We have no time to lose in managing this transformation for the benefit of investors, businesses, and wider society,” McGuinness remarked.