U.S. Shifts Stance on Digital Assets with New Legislative Measures
The recent passage of the GENIUS Act and the CLARITY Act by the U.S. House of Representatives marks a significant shift in the country’s approach to the digital asset landscape. After years of uncertainty imposed by the Biden Administration, which created a challenging environment for users and innovators in the digital asset space, the U.S. is now aligning its policies more closely with those of other nations. This became evident during my recent travels with bipartisan members from the House Committee on Financial Services and the House Committee on Agriculture, where we engaged in discussions on digital asset oversight across Latin America and Europe.
Observations from Global Digital Asset Usage
In our meetings with officials from both the private sector and government, it was enlightening to observe the global landscape of digital asset utilization and development. Each region—Latin America, Europe, and the U.S.—is charting its own course in the evolution of digital asset markets, highlighting the urgent need for the U.S. to establish a solid regulatory framework for these assets.
Latin America’s Growing Adoption of Digital Assets
Throughout Latin America, we witnessed numerous practical applications of digital assets in everyday transactions. In regions like South and Central America, individuals are increasingly adopting digital currencies for payments, remittances, and savings. Last year, the market for digital assets in this area was valued at an impressive $415 billion, with nearly half of the investment flowing into stablecoins pegged to the U.S. dollar.
Argentina has emerged as a leader in this space, utilizing stablecoins as a safeguard against inflation while the Milei Administration works on formalizing a regulatory framework. Additionally, Paraguay’s abundant hydropower resources have turned it into a hotspot for Bitcoin mining, and Mexico is enhancing its oversight of fintech and cryptocurrency in response to growing consumer demand. Peru is also making strides by integrating digital asset exchanges into its anti-money laundering efforts and planning to include digital assets within its tax regulations. Overall, Latin America showcases the potential of digital assets to provide inflation resistance, facilitate low-cost transfers, and promote financial inclusion.
Insights from European Digital Asset Regulation
Our delegation also engaged with financial regulators, central bankers, and innovators in Europe. In 2023, the European Union enacted the Markets in Crypto-Assets (MiCA) regulation, establishing a comprehensive legal framework for the digital asset ecosystem. MiCA aims to delineate clear guidelines for electronic money tokens, asset-referenced tokens, service providers, and stablecoin issuers throughout the EU. Coordinated efforts by the European Securities and Markets Authority (ESMA) and the European Banking Authority ensure that regulations are uniformly applied across member states.
Europe’s early implementation of digital asset regulations provided valuable insights as the U.S. embarks on a similar path. Conversations with European digital asset firms emphasized the importance of thoughtful implementation to create a functional regulatory environment. It is crucial to ensure that regulations do not inadvertently stifle small, innovative companies, thereby favoring only larger institutions that can navigate the regulatory landscape.
The Need for a Comprehensive Market Structure in the U.S.
Despite the U.S. being a central player in the digital asset market, characterized by its substantial liquidity and home to leading issuers and exchanges, there is still a lack of a well-defined market structure. The GENIUS Act, which was signed into law by President Trump on July 18, 2025, represents the first significant step toward providing regulatory clarity for digital assets. This legislation introduces a framework for the issuance of payment stablecoins, paving the way for a modernized digital payments ecosystem in the United States.
Urgency for Regulatory Advancement
However, this act is just one component of a larger framework needed to foster innovation while safeguarding consumers and investors. Without a comprehensive market structure, the U.S. risks falling behind as Latin America rapidly adopts digital assets and Europe enforces its cohesive regulatory environment. In July, the House passed the CLARITY Act with a bipartisan vote of 294-134, highlighting the urgency for the U.S. to keep pace with global developments. The time to establish a robust digital asset market structure is now, with a goal to achieve this by the end of the year.
