Crypto entrepreneurs were fleeing America, but we can bring them back

Opinion by: Senator Tim Scott and Senator Cynthia Lummis

The US Congress recently took a major step toward reclaiming the United States’ leadership in financial innovation. The bipartisan GENIUS Act passed — a landmark bill that establishes the first-ever federal framework for payment stablecoins.

It’s a milestone for consumer protection, national security and American competitiveness — and proof that principled leadership can still deliver real results.

America has always led the world in finance because it has embraced innovation, rewarded prudent risk-takers and built the most dynamic capital markets in the world. In recent years, that leadership — particularly when it comes to digital assets — has been undermined, not by foreign competitors, but by Washington’s own regulatory onslaught.

A former failed approach

The Biden administration stalled financial advancement by using regulation by enforcement instead of a clear regulatory framework, plunging the industry into uncertainty and costing it tens of millions in legal fees

The Securities and Exchange Commission “rewarded” well-meaning entrepreneurs with enforcement actions, leading to protracted legal fights that entrepreneurs had to wage against regulators instead of focusing on innovation. This failed approach turned innovation in the US into a legal minefield, where the penalty for guessing wrong was not just bankruptcy, but also federal charges.

Related: US Senate Republicans release draft bill for crypto market structure

This is government malpractice on a generational scale, and it’s a crisis of our own making

Other countries have viewed America’s absence as an opportunity to lead. The United Kingdom is working to make its mark in digital assets. Japan — traditionally cautious — has created digital asset frameworks in hopes of attracting international business

Meanwhile, America has yet to formally establish whether many digital assets are a commodity or a security. American companies should be driving prosperity at home, not fleeing to foreign markets like Singapore and Switzerland. Fortunately, the US can still right the ship with a solution as simple as establishing regulatory clarity.

Prioritizing innovation

We released a discussion draft to help give investors and the digital asset industry the certainty they deserve to ensure this vital industry innovates on American soil. This is a critical step toward advancing market structure legislation, which will shore up the US’s position as a global leader in financial innovation

The digital asset revolution is rewriting the rules of finance, whether or not America participates. We have the ability to be architects of advancement or be bound to the decisions of other countries. The US can continue to be paralyzed by apprehension, or it can remember that the nation was founded on bold and ambitious actions.

This is the moment that will shape the US financial system for generations to come — it’s best to not squander it.

Opinion by: Senator Tim Scott and Senator Cynthia Lummis.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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