Anchorage Digital’s Call for Better Regulation

Diogo Mónica, co-founder and president of Anchorage Digital, has voiced concerns about the regulatory landscape in the United States, noting it remains unclear and fragmented. In contrast to his experiences in Singapore, where regulation is streamlined under the Monetary Authority of Singapore (MAS), Mónica emphasizes that U.S. regulators have created a complicated environment with multiple agencies competing for oversight.

One Regulator to Rule Them All

Speaking to Cointelegraph, Mónica highlighted how in Singapore, there’s a single regulator that oversees all asset types. He remarked on the clarity this provides for businesses and called the regulatory experience in Singapore a “breath of fresh air.”

Regulatory Fragmentation in the U.S.

Contrarily, Mónica expressed the frustration of navigating the U.S. regulatory framework, stating there are 15 different regulatory bodies each vying for dominance while delivering conflicting rulings and guidelines. “We want some kind of regulation,” he implored, stressing the need for clarity in how assets are classified and regulated.

Political Jockeying in Web3 Regulations

Mónica criticized the politicization of Web3 technology in the United States, noting that it has created a partisan environment around what should fundamentally be a bipartisan issue. He remarked, “It’s supposed to be bipartisan, it’s not ‘blue’ or ‘red’ — it should be ‘gold.’ It’s ‘digital gold.’”

Self-Regulation: Lessons from Recent Failures

In the wake of high-profile failures such as the collapse of the Terra ecosystem, Mónica argued that the industry should have taken steps to self-regulate, particularly in explaining the intricacies of algorithmic stablecoins. He stated that many industry insiders were aware of the potential risks and that more explicit communication could have prevented significant financial fallout.

Experience with High-Profile Mistakes

Mónica acknowledged that several unforced errors have contributed to the current state of regulation within the crypto space, citing the SEC’s actions against celebrities who promoted cryptocurrencies as an example of the regulatory challenges that have emerged.

Anchorage’s Significant Milestones

Anchorage Digital has been at the forefront of regulatory developments as the first crypto firm to receive a national bank charter in the U.S. in January 2021. The firm provides infrastructure enabling custody, exchange, staking, and other Web3 services, emphasizing the need for coordinated messaging around digital asset governance.