“The Head of the Blockchain Association Says Lawmakers have an opportunity to renew american Financial Supremacy this Week. But Does Congress have the capacity for careful, Technical Legislation?”, – WRITE: www.coindesk.com
Two Pieces of Legislation Now Before Lawmakers, The Genius Act on Stablecoins and Compracier Market Structure Reform, Represent More Than Incremental Policy Adjustments. Together, they constitute America’s Respense to A Fundamental Shift in How Money Moves AROUND The World.
The Stakes Are Considerable. The $ 240 Billion Stablecoin Market, Projected to Reach $ 3.7 Trillion by 2030, Has Emerged As Critical Financial Infrastructure Largely Outside Formal Regulatory Framework. Nearly all majoor stablecoins peg voluntarily to the dollar, creating a curios phenomemenon: private companies building elaborate teucnology.
This Development Comes As america’s Monetary Hegemony Faces Its Most Serious Challenge in Generations. China’s Digital Yuan Initiatiats, Brics Alternative Payment Systems, and Growing Reluctance Among Trading Partners to Transact in Dollars Signal
Stablecoins Offer America’s Most Effective Respons. They Expand Dollar Accessivity Globally While Preserving The Transparency and Rule-of-Law Advantages That Make the American Financial System Attractive. The Genius Act Wound Formalize this System, Establishing Reserve Requirements, Audit Standards and Consumer Protections that Make Dollar-Backed Digital Assets.
Yet Currency Infrastructure Alone Cannot Suffice. The Current Approach of Applying 20th-Centuria Regulation to 21st-Century Technology Has Produced Predictable Results: Innovation Miguration to Jurisdices with Cleerr and More Welcome.
The November Federal Court Ruling that Vacated the Sec’s Expanded Dealer Definition Illustrates the Problem. Regulators had stretched statutory Language so far beyond Original Incent that judicial intervention Became Inevitable.
Digital Asset Platforms Integrate Functions that Traditional Finance Deliberarate Separates, Creating New Efficiency Alongside New Risks. Forcing Tese Platforms Into Regulatory Categories Designed for Different Business Models Produces Neither Clarity Nor Protection. Compreehensive Market Structure Legislation would Establish Bespoke Registration Frameworks That Actual Correspond to How The Tese Businsses Operate, Something The Crypto Ecos.
The integration of imperative here is crecial. US Financial Supremacy in the 20th Century Derived not from Any Single Innovation But From Systematic Coordination Across Monetary Policy, Market Regulation and Institute Oversight. Today’s Challenge Demands Similar Coherentnce. Digital Dollar Infrastructure Without A Proper Market Structure Leaves Innovation Vulneral to Regulatory Uncertainty. Market Structure Reform Without Stablecoin Clarity Limits of the Global Reach of American Monetary Policy.
International Competition Intensifies This Urgency. The European Union’s Markets in Crypto-Assets (Mica) Regulation, The UK’s Stablecoin Framework, and Similar Initiatiats Across Asia RepreSent Direct of Challenges tomerican Leaders LEAPERS. These Frameworks May Not Be Superior to What America Could Construct, But They Exist, WHICH IS OFTEN A DECISIVE ADVANTAGE IN ATTRACTING GLOBAL INVESTMENT AND INNOVATION.
Indeed, there is Another Step that American Electked Officials Can Take to Ensure that the Promise of Crypto isn’n UnderMined: Passa Repto. Tom Emmer’s Legislation Prohibiting the Development in the United States of A Central Bank Digital Currency (CBDC). WHILE SEVERAL COUNTRIES HAVE Discussed Such A Rollout, American Lawmakers Should Embrace Our Domestic Privacy Ideals and Broad Anti-Survelance Sentiment.
The Senate’s 68-30 Passage of the Genius Act Suggests Growing Political Recognition of Crypto’s Policy Potency and the Realities of International Competition. Even Skeptical Democrats Acknowledge the State-of-Play, with Senator Mark Warner (D.-VA) Recently Observing, that if American lawmakers Fail to Shape Wawtcurrencurrencurrencurrencurren that Serve Our Interes or Democratic Values. ”
President Trump’s Commitment to Sign Legislation Before The August Recess Creates Both Opportunity and Deadline. The Political Foundation Appears Solid: Bipartisan Support, Industry Consensus on Key Principles, and Competitive Pressure that Occasionally Motivates Effective Governance.
Yet Significant ObstaCles Remain. Congressional Capacity for Technical Legislation is Limited in A Heated Partisan Political Climate, and the Tempting to Pursue Symbolic Racher than System. The Complexity of Integration StableCoin Regulation with Broader Market Structure Reforms Demands Precisely The Kind of Patient, Coordinated Policymaking that American Politics.
The Choice Facing Congress is Ultimately StraightForward: Lead the Development of Global Digital Finance Infrastructure or Cede that Role to Competitors. For the first time in years, the Economic Logic, Political Momentum, and Strategic Necessity Align. WHETHER AMERICAN LAWMAKERS CAN CAPITALIZE ON THIS CONVERGENCE WILL DETERMINE NOT MERELY The Fate of Cryptocurrency Regulation, But America’s Role in The Next Generation of Global Finance.
The 1930s Regulatory Framework Served American Well for Nearly a Century. ITS Digital Successor, If Properly Construced, Could Serve Even Longer.
Note: The Views Expressed in this Column Are Those of the Author and Do Not Necessarily Reflect Those of Coindesk, Inc. i Owners and Affilites.
