SEC Commissioner Claims IndoPacific Countries Are Surpassing the US in Crypto Regulation

A U.S. Securities and Exchange Commission (SEC) commissioner has urged the U.S. to adopt a more proactive approach to crypto regulation, pointing to the leadership of Indo-Pacific nations like Japan, Singapore, and Hong Kong. He emphasized that these countries have crafted clear frameworks that foster innovation while protecting investors, in contrast to the U.S., where unclear guidelines leave market participants struggling with uncertainty.
SEC Commissioner Urges US to Learn from Indo-Pacific’s Crypto Leadership
U.S. Securities and Exchange Commission (SEC) Commissioner Mark T. Uyeda compared the U.S. SEC’s regulatory approach to those of other countries, especially in the Indo-Pacific, regarding crypto and fintech, at the AIMA APAC Annual Forum in Hong Kong on Wednesday.
He stressed that while the U.S. continues to grapple with unclear regulatory frameworks for digital assets, countries like Japan, Singapore, Hong Kong, and Australia have taken a leadership role in fostering innovation while protecting investors. Uyeda praised the regulatory advancements in the Indo-Pacific, stating: “I believe there is much to learn from market regulators in the Indo-Pacific region on how to promote these values and objectives.”
The SEC commissioner highlighted how countries in the region have crafted forward-looking regulations that balance the need for innovation with investor protection. For instance, Hong Kong has introduced a stablecoin licensing regime, Singapore has committed $150 million to promote fintech, Japan has issued guidelines for crypto exchange supervision, and Australia has its own regulatory sandbox.
Uyeda said:
My impression is that Hong Kong, Singapore, Japan, and Australia, among others, have shown leadership in how to facilitate crypto and fintech capital formation and innovation while promoting investor protection.
The U.S. regulator emphasized that many companies have been forced to navigate these uncertainties on their own. “My view is that the SEC could do much more in addressing the key gating question of whether a crypto asset is a security. Market participants have been forced to struggle with this analysis and decipher SEC views from various settled enforcement actions and litigation in the courts,” he detailed. “One concern expressed by market participants has been that the SEC has not provided sufficient guidance on key issues, such as when does a particular crypto offering need to be regulated as a security offering.”
In comparison, the SEC’s approach has been less clear, leaving market participants uncertain about key regulatory issues, Uyeda pointed out, adding:
By comparison to the Indo-Pacific region, the SEC’s current regulatory approach to crypto and related technology is less advanced.
Uyeda urged the SEC to learn from the Indo-Pacific’s proactive stance and become more transparent and engaged with the crypto industry. He pointed to fintech events and regulatory sandboxes used by regulators in the region as examples of how to support innovation. In contrast, the U.S. lacks a specific registration form for crypto, making the regulatory process difficult for issuers. Uyeda warned that the U.S. must not “bury our heads in the sand about the growing benefits and risks of crypto and financial technology,” calling for the SEC to take a more active role in addressing these challenges.