When the Congress created the Securities and Exchange Commission in 1934, it responded to a myriad of failures of a obsolete financial system. The regulatory architecture that emerged has provided the base of almost a century of American financial domination. Today, Congress faces a comparable moment: the opportunity to modernize the American financial infrastructure for the digital age.
Two laws now before the legislators, the Act respecting the stablescoins and the complete reform of the structure of the market, represent more than additional policy adjustments. Together, they constitute America’s response to a fundamental change in the way money moves in the world.
The issues are considerable. The Stablecoin market of $ 240 billion, planned to reach $ 3.7 billions by 2030, has become a large -part financial infrastructure outside of formal regulatory frameworks. Almost all the main stablescoins are voluntarily in the dollar, creating a curious phenomenon: private companies creating developed technology to make US currency work better on a global scale than existing payment systems.
This development occurs while American monetary hegemony is faced with its most serious challenge in generations. The initiatives of Yuan Digital de la China, the alternative payment systems of BRICS and the growing reluctance among the business partners to be transformed into dollars indicate a coordinated effort to bypass the American financial influence.
Stablecoins offer the most efficient response in America. They expand the accessibility of the dollar on a global scale while preserving the transparency and the advantages of the law rule which make the American financial system attractive. The law on engineering would formalize this system, establishing reserve requirements, audit standards and consumer protections that make digital assets supported in dollars both safer and more attractive than alternatives.
However, monetary infrastructure cannot be sufficient alone. The current approach to the application of 20th century technology regulations produced foreseeable results: innovation migrating to jurisdictions with clearer and more welcoming rules.
The decision of the Federal Court of November which canceled the extended definition of the SEC concessionaire illustrates the problem. The regulators had extended statutory language so far beyond the original intention that judicial intervention has become inevitable.
Digital asset platforms incorporate the functions that traditional finance deliberately separates, creating new efficiency alongside new risks. Forcing these platforms in regulatory categories designed for different commercial models produces neither clarity nor protection. The complete legislation of the market structure would establish tailor -made registration executives which really correspond to the way in which these companies operate, which the cryptographic ecosystem recommended for years.
The imperative of integration here is crucial. American financial supremacy in the 20th century does not come from a single innovation but from systematic coordination through monetary policy, market regulations and institutional surveillance. Today’s challenge requires similar consistency. The infrastructure in digital dollars without appropriate market structure makes innovation vulnerable to regulatory uncertainty. The reform of the market structure without clarity of stable limits the global scope of American monetary policy.
International competition intensifies this emergency. European Union markets in crypto-active (Mica) The regulations, the United Kingdom Stablecoin framework and similar initiatives through Asia represent direct challenges to American leadership in financial technology. These executives may not be superior to what America could build, but they exist, which is often a decisive advantage in attracting global investments and innovation.
Indeed, there is another step that American elected officials can take to ensure that the promise of the crypto is not undermined: adopting the legislation of the Tom EMMER representative prohibiting development in the United States of a digital currency of the Central Bank (CBDC). Although several other countries have discussed such deployment, American legislators should adopt our domestic privacy ideals and a large anti-surveillance feeling by supporting this important legislation.
Adoption 68-30 of the Senate of the Engineering Act suggests an increasing political recognition of the political power of crypto and the realities of international competition. Even the skeptical democrats recognize the play of play, with Senator Mark Warner (D.-VA) Recently observed that if American legislators do not shape the regulation of cryptocurrencies, “others – and not in a way that serves our democratic interests or values”.
President Trump’s commitment to sign legislation before August the recess of August creates both opportunities and deadlines. The political foundation seems solid: bipartisan support, industry consensus on key principles and competitive pressure that sometimes motivates effective governance.
However, important obstacles remain. The capacity of the Congress to Technical Legislation is limited in a heated partisan political climate, and the temptation to pursue a rather than systematic symbolic reform is strong. The complexity of the integration of the regulation of stablescoin with a broader reform of the market structure requires precisely the type of development of patient coordinated policies that American policy sometimes has trouble producing.
The choice is faced with the congress is ultimately simple: directing the development of the global digital finance infrastructure or yielding this role to competitors. For the first time in years, economic logic, political impetus and strategic necessity have been alternating. The question of whether American legislators can capitalize on this convergence will not only determine the fate of the regulation of cryptocurrencies, but the role of America in the next generation of global finance.
The regulatory framework of the 1930s served America well for almost a century. Its digital successor, if it is properly built, could be used even longer.
