- The US has unleashed a torrent of digital asset-friendly measures.
- Recently passed GENIUS Act has created a stampede of developments with Stablecoins.
- The US Presidential Working Group also issued over a hundred recommendations for digital assets.
- With regulatory clarity, banks and nonbanks are jumping into the fray with products and solutions.
- Safety concerns and regulatory oversight may expand, but digital assets' momentum look unstoppable.
In line with the pledges made during his 2024 election campaign, US president Donald Trump has taken a series of landmark steps to add substantial energy and regulatory clarity to the digital ecosystem. The major boost in support from the US authorities is causing ripples around the world, as regulators shift from consultation to execution.
Starting with the launch of a Bitcoin Strategic Reserve, the US has unleashed a torrent of digital asset-friendly measures this year. The recently passed Genius Act has created a stampede of developments with stablecoins. In late July, a US Presidential Working Group issued over a hundred recommendations to deepen the digital asset ecosystem.
As regulatory nudges and clarifications materialise, banks and nonbanks are jumping into the fray with products and tech solutions. For monetary authorities and financial sector regulators, a wide range of challenges await. Can stablecoins proliferate while upholding key properties like singleness (all stablecoins should be equal), elasticity (responsive liquidity and settlement), and integrity (central authority with power to regulate)? The answers are not yet fully clear.
Safety and security concerns and regulatory oversight will likely expand in the coming months and years, but digital assets’ momentum may be unstoppable. We could very well be standing at an inflection point.
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