Cryptocurrency is quickly reshaping global finance, but the United States is already at risk of falling behind.
Public debate often fixates on speculation and volatility, but the true value lies in the underlying technology, and it has matured significantly. Today’s blockchain infrastructure supports faster transactions, lower fees and programmable financial systems used for cross-border payments, capital formation, digital identity, and inclusive lending.
To maintain leadership in financial innovation, the United States needs to focus on harnessing blockchain’s potential to strengthen the economy while ensuring smart and effective regulation. The Senate took an important first step with the passage of the GENIUS Act, but more action is needed.
In countries with hyperinflation or corrupt governments, people lack trust in their currency. Digital assets, whose supply is set by code, rather than a centralized and political government, can help preserve the value of money. Crypto also enables fast, low-cost global transfers. Traditional remittances like Western Union are expensive and slow. Almost 1.4 billion people do not have access to a bank account, but if you have a smartphone, you can save, send and receive money all via a wireless connection.
Even in the United States, where 95 percent of adults have bank accounts, crypto offers a near-instant setup and a low-cost alternative for those with limited financial access. People may question the need for instant payments, but for small businesses, hourly workers and immigrants sending money home, waiting for a bank transfer can mean late bills, overdraft fees, or missed wages. Venmo and PayPal may feel digital, but they operate on closed networks, can’t communicate with one another, and still depend on banks. Stablecoins, however, move 24/7 across platforms and borders, settling in minutes, not days.
America has always been a global hub for innovation, but we are lagging in cryptocurrencies and building blockchain-based services and solutions. India and Singapore are racing ahead in adoption and infrastructure. In the second quarter of 2024, $1 billion in crypto payments were processed in Singapore. In contrast, the United States has treated crypto mostly as a speculative asset instead of exploring its potential as a real payment system. We have the talent and capital to lead in crypto, and a president who supports the industry. However, without regulatory progress, we risk letting the opportunity to catch up and lead slip away.
Stablecoins, digital assets designed to be worth one U.S. dollar, are at the center of this prospect. They’re growing in use, and while not the only kind of crypto asset, they are the ones most likely to affect everyday people and the broader economy. Without proper regulation, stablecoins can pose risks to consumers and financial markets.
One way the United States can begin leading in the cryptocurrency industry is by fostering an environment of innovation, starting with regulatory clarity on how cryptocurrency fits into the infrastructure of payments, digital identity and financial access. That’s why it matters that the GENIUS Act passed the Senate. It establishes federal standards for stablecoins, requiring them to be backed one-for-one with U.S. dollars or similarly safe assets, subject to regular audits and anti-money laundering compliance. This is a significant step toward balancing innovation and consumer protection.
Other proposals still under consideration — like the Clarity Act — would clarify whether digital assets are securities, regulated by the SEC, or commodities, regulated by the Commodity Futures Trading Commission. The STABLE Actbuilds on the GENIUS Act but goes further by requiring stablecoin issuers to be insured depository institutions (i.e., banks). Together, these bills can bring structure, safety and legitimacy to the crypto economy while positioning the United States as a global leader in digital finance.
We are seeing momentum in the private sector. Circle, the company behind the USDC stablecoin, recently had an initial public offering to strong investor demand. Block Inc. is rolling out Bitcoin payment options across Square point-of-sale terminals, making crypto easier to use in everyday transactions. And Ripple, a major crypto infrastructure firm, acquired Hidden Road, a prime broker active in foreign exchange, digital assets, fixed income, and derivatives, blurring the line between traditional finance and crypto.
These developments signal that crypto is moving into the financial mainstream. The only real question is whether the United States will lead or follow.
