Time Runs Out for U.S. Crypto Market Structure Reform

The passage of the GENIUS Act and the CLARITY Act through the U.S. House of Representatives marks a significant shift in the country's approach to the digital asset ecosystem, moving away from the uncertainty of the past four years. During a recent trip to Latin America and Europe with members of the House Committee on Financial Services and House Committee on Agriculture, it became clear that these regions are pursuing distinct paths in the development of digital asset markets, highlighting the need for the U.S. to establish a regulatory framework. Latin America, in particular, has seen significant grassroots adoption of digital assets for payments, remittances, and savings, with countries such as Argentina, Paraguay, and Mexico making notable strides. The region's digital asset market was valued at $415 billion last year, with a substantial portion of investment flowing into U.S. dollar-denominated stablecoins. In Europe, the European Union's Markets in Crypto-Assets (MiCA) law has created a comprehensive regulatory framework for the digital asset ecosystem, providing a model for the U.S. to follow. However, the U.S. still lacks a comprehensive market structure for digital assets, despite having the deepest liquidity and being home to some of the largest issuers and exchanges. The GENIUS Act, signed into law in July 2025, was a first step towards providing regulatory clarity, but more needs to be done to create a functional framework that allows innovation while protecting consumers and investors. The House's passage of the bipartisan CLARITY Act is a positive step, but time is running out for the U.S. to enact a digital asset market structure and keep pace with the rest of the world.