Cathie Wood, the CEO of Ark Invest, has hailed Hong Kong’s strong pro-crypto regulatory policy.
She also urged the United States government to follow Hong Kong’s template for the emerging industry.
Cathie Wood Lauds Hong Kong Regulators
During her address at Hong Kong’s Web3 carnival, Cathie Wood commended the regulatory efforts of institutions like the Securities and Futures Commission (SFC) to clarify the crypto industry. She emphasized the SFC’s role in establishing a robust framework for crypto trading under institutional supervision.
Wood underscored Hong Kong’s emergence as a policy leader, attributing it to the government’s proactive stance toward fostering innovative technologies.
“Hong Kong regulatory agencies such as the SFC have done a very good job. They have provided a very comprehensive management structure to allow virtual asset commodities to be traded…It can be said that Hong Kong is the “leader” in terms of policy. It strongly encourages the development of innovative technology and entrepreneurs. The system of investment and mutual cooperation with the government has given the institution a good model,” Wood remarked.
Indeed, Hong Kong’s regulatory environment has embraced favorable policies for the crypto sector. This has positioned the city-state as a welcoming hub for crypto-related initiatives and growth.
Furthermore, Wood expressed concerns over the absence of a coherent regulatory framework in the United States. She added that this lack of clarity has impeded progress and created an uneven playing field for businesses within the sector.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
Over the past year, several crypto firms in the US have lamented the industry’s lack of regulatory clarity. Various federal agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have fragmented the crypto industry’s regulatory policies. This has led to confusion and uncertainty among businesses operating in the space.
Wood highlighted the consequences of this regulatory ambiguity. She pointed out that this has led to a talent drain in the sector as US-based crypto firms seek more favorable regulatory climates abroad. Companies like Coinbase and Gemini established international trading platforms last year due to regulatory challenges in their home country.
“The US is currently facing regulatory uncertainty and a brain drain in the blockchain field. If regulators can treat practitioners better and give them more clarity and freedom, we will be able to see better results,” she added.
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