We're so caught up in the daily drama of Washington, the price of Bitcoin, and the latest celebrity endorsement that we're missing the bigger picture. America's foot-dragging on crypto regulation isn't just stifling innovation here at home, it's actively harming developing nations and widening the global wealth gap. Seriously, think about that for a second.
Missed Opportunity For The Unbanked
Now picture a world where people everywhere have access to secure, affordable, reliable financial services—no matter where they live or how much money they make. That's the promise of crypto. In nations where conventional banking is difficult to reach or inconstant, crypto offers a crucial lifeline. This is particularly so in rural Africa, parts of South America and in US communities lacking infrastructure. It’s an opportunity to leapfrog failed infrastructures and allow people to make their own choices through direct engagement with the global economy.
America’s regulatory limbo threatens our leadership on this revolution. Whether it’s Europe’s confidence as they proceed into the future under their MiCA framework. In the meantime, we are stuck in the mud of litigation and Hobbesian uncertainty. This isn't just about losing business to Europe; it's about denying opportunity to those who need it most.
The Remittance Rip-Off Continues
Sending money home to family back in their countries of origin is a vital economic lifeline to millions of families in developing countries. The legacy remittance space has a long history of price gouging. These costs are consistently the biggest slice of pie when it comes to the funds being remitted. Crypto offers a faster, cheaper alternative. Now, picture if it would be as simple as lowering remittance fees by a few points. That money would go directly into the pockets of families who are fighting to survive in today’s economy.
America’s regulatory hesitations unintentionally preserve the status quo. In doing so, we need to provide a coherent and conducive environment for crypto remittances. Without it, we’re giving a big green light to predatory fees. It’s as if you watched a robber rob Peter to pay Paul, and you refused to arrest him. We don’t mean to make it sound like this is far from the truth – this is what’s happening on the ground.
Small Business Suffocation
Now imagine a tiny coffee producer in Colombia wanting to sell their beans directly to American consumers. Otherwise, they’d be met with a mountain of bureaucratic hurdles and a tidal wave of costly fees. Yet with crypto, they might finally be able to cut out these intermediaries and reach a global market directly. It’s about giving innovators the tools they need to create an economic opportunity under every rock.
America’s regulatory uncertainty looms much larger over this potential. Now, many crypto platforms are apparently afraid to set up shop in the US for fear of the potential legal consequences. This greatly curtails access to these opening-potential tapping, new tools for entrepreneurs in developing countries who depend on US markets. That’s like building a bridge only halfway and stopping, stranding everybody on the other side.
Development Goals Held Hostage
We often discuss poverty reduction, economic growth, and social inclusion as being non-controversial noble goals. How serious are we, really? The answer is yes, and when used responsibly and collaboratively, crypto can be an incredibly effective tool to help achieve these goals. It can support micro-lending, expand access to education and healthcare, and yes, even help fight corruption.
In other words, by not embracing crypto in an appropriate manner, America is actively sabotaging its own development goals. We’re doing a terrible job sending signal to the world. We discuss the need for more economic empowerment, while simultaneously rolling back innovation that would create it.
Freedom vs Needs: A False Dichotomy
The crypto regulation debate has typically tried to portray the fight as between freedom and government control. That's a false choice. We can have both. We can encourage innovation, and still protect our consumers, and still prevent bad or illicit activity. Europe’s new Markets in Crypto Assets (MiCA) framework is the latest example of this.
Though the GENIUS Act introduced in the U.S. provides a glimmer of hope, that’s all it is—a start. What we do need is a consistent regulatory regime that welcomes the innovation crypto allows but keeps its dangers at bay. To be a true partner to international organizations and the developing world, let’s do better. Let’s work together to foster a global crypto ecosystem that gives everyone a fair shot.
The reality is, America’s crypto stalling isn’t only costing us potential profits and jobs. It's about a moral failing. It's about turning our backs on the potential to use technology to alleviate poverty, empower individuals, and create a more just and equitable world. It's time we demand better. It's time we demand action. Let’s no longer allow fear and greed to tether us to an uncertain future. Let’s get to work realizing crypto’s potential to build a more inclusive and prosperous world for us all.
If that goes against the grain of Washington’s thinking? Good. And that’s why, at times, the best things in life are extreme.
