We're at a crossroads. America, the land of innovation, would instead ensure that we become a crypto colony, calling the shots only from countries that take the regulatory lead. We can’t let countries like China and the UAE continue to develop the future of finance without us in the game. The Senate Banking Subcommittee hearing made one thing clear: the time for debate is over. The time for action is now.

Losing Economic Sovereignty

Picture this reality — that when we visit the hottest fintech startups tomorrow, we’re going to Singapore instead of Silicon Valley. American innovators should not have to wait while the next generation of financial products are developed under foreign regulatory frameworks. American investors have to jump through a confusing and risky gauntlet of foreign exchanges just to engage. This isn’t a future dystopia, it’s a present day threat if we don’t act on comprehensive crypto regulation now.

Singapore, as discussed at the Senate hearing, is already doing this and leading the way. They’re pulling in billions of dollars in investment and new talent, creating a robust and innovative crypto ecosystem, all made possible by a clear, proactive regulatory approach. In the meantime, we’re mired in a morass of ambiguity, choking off new ideas and innovation, while giving away our economic competitive edge to other countries.

This isn't just about missing out on the next big thing. It's about our economic sovereignty. It’s about making sure that America wins the coming global economy competition, not loses it. It’s about ensuring our national priorities in an era of fast-paced change. Are we truly prepared to hand over the future of financial services to other nations? I, for one, am not.

Innovation Stifled, Investment Flees

Remember what the internet used to be like. Picture this — instead of embracing the internet revolution, the US government responded in fear and hesitation, overregulating the new technology and quelling its innovation. Would we even have the tech giants we have all come to know and love (and sometimes loathe)? Otherwise, would we enjoy the same rates of economic growth? Absolutely not.

The same principle applies to crypto. Without a clear regulatory regime, innovation and investment is driven away by a lack of certainty. Here’s why a blockchain startup with a lot of potential wouldn’t want to locate their business headquarters here. The United States presents an attractive market, full of potential. The market is extremely competitive.

We're already seeing this happen. These companies are relocating their operations overseas, taking American jobs and economic opportunity along with them. As a result, we are missing out on the myriad ways blockchain technology could revolutionize industries such as finance, healthcare, and supply chain management.

The price of doing nothing is just way too steep. We need to build a regulatory framework that incentivizes innovation while attracting investment. At the end of the day, that’s going to help American businesses to compete on a fair and effective basis.

  • Brain Drain: Talented engineers and entrepreneurs will seek opportunities in countries with clearer regulatory frameworks.
  • Reduced Investment: Venture capital firms will be hesitant to invest in US-based crypto companies due to regulatory uncertainty.
  • Slower Innovation: The pace of innovation in the US crypto space will lag behind other countries.

Aside from the economic considerations, there is a national security aspect to regulating crypto that cannot be overstated. Sarah Hammer and other panelists stressed an important point. Without clear anti-money laundering (AML) and counter-terrorist financing (CTF) rules for the entire crypto space, bad actors can more easily operate under the radar.

National Security at Stake

We can no longer allow criminals and terrorists to take advantage of this regulatory vacuum. What we certainly do need to do is put in place strong AML and CTF safeguards because we don’t want crypto to be used to do bad things. This isn't just about protecting our financial system. It's about protecting our national security.

Additionally, not regulating crypto might have the unintended effect of exposing us to increased cyberattacks or other threats against our critical infrastructure. A predictable, uniformly well-regulated crypto ecosystem would be less vulnerable to some of these hucksters and would-be charlatans. Imagine it as national cybersecurity’s equivalent of guarding our digital frontiers. Without intelligent regulations and real enforcement of rules and permits, we’re really leaving ourselves vulnerable to all kinds of disaster.

This is why Senator Lummis’s call for bipartisan cooperation should be heeded. This isn’t a Republican or Democratic issue, it’s an American issue. So much for bipartisan posturing, people. Only together can we build a regulatory framework that both protects our national security and promotes American commercial and geopolitical interests. The GENIUS Act is an excellent place to start.

It's time for Congress to act. We agree that it is time for a clear, comprehensive crypto legislation that gets these big important things right. First, we need clear regulatory frameworks for stablecoins, crypto exchanges, and other digital assets. Under the broader umbrella of promoting a competitive marketplace, we must protect consumers, combat illicit activity, and foster innovation. The future of American economic sovereignty rests on it. Let's not become a crypto colony. Let's lead the way.

It's time for Congress to act. We need comprehensive crypto legislation that addresses these critical issues. We need clear regulatory frameworks for stablecoins, crypto exchanges, and other digital assets. We need to protect consumers, combat illicit activity, and foster innovation. The future of American economic sovereignty depends on it. Let's not become a crypto colony. Let's lead the way.