With the introduction of the GENIUS Act and the passage of the CLARITY Act through the U.S. House of Representatives, the United States has shifted away from its previously adversarial stance on the digital asset sector. While the Biden Administration introduced numerous uncertainties for digital asset users and innovators over the past four years, other nations adopted alternative strategies. This became evident during my travels with bipartisan members of the House Committee on Financial Services and the House Committee on Agriculture to Latin America and Europe for a series of meetings focused on digital asset oversight.
Throughout our conversations with leaders from both the private sector and government, I witnessed firsthand the diverse ways digital assets are being utilized and evolving on a global scale. The conclusion is unmistakable: Latin America, Europe, and the U.S. each offer a unique trajectory in the growth of digital asset markets, underscoring the imperative for the U.S. to establish a coherent regulatory framework for these markets.
In Latin America, we observed practical applications of digital assets in everyday economic activities. In regions like South and Central America, grassroots adoption of digital assets is gaining momentum for uses like payments, remittances, and savings. Last year, the digital asset market in the region was valued at $415 billion, with 46% of investments predominantly funneled into U.S. dollar-backed stablecoins.
Argentina is emerging as a leader in digital assets within Latin America, with stablecoins offering an inflation-resistant means of saving as the Milei Administration moves toward establishing a regulatory framework. Paraguay has leveraged its hydropower resources to become a hub for Bitcoin mining, while Mexico is making strides in fintech and crypto regulation in response to robust consumer demand. Furthermore, Peru is integrating digital asset exchanges into its anti-money laundering and counter-terrorism financing efforts and has indicated plans to incorporate digital assets into its national taxation system. In essence, Latin America showcases compelling use cases for digital assets, including inflation resilience, affordable transfer options, and enhanced financial inclusion.
We also engaged with European Central Bank officials, financial regulators, and innovators from the private sector. In 2023, the European Union (EU) enacted the Markets in Crypto-Assets (MiCA) legislation, establishing a comprehensive regulatory framework for the digital asset landscape. MiCA aims to dictate the operational standards for e-money tokens, asset-referenced tokens, service providers, and stablecoin issuers throughout the EU. The EU’s market regulator, ESMA, along with the European Banking Authority, collaborates with member states to ensure the consistency of digital asset regulation.
Given the EU’s advantage in rolling out their digital asset regulations, it was enlightening to hear their experiences as the U.S. embarks on a similar path. Discussions with European digital asset firms highlighted that effective implementation is vital for creating a functional framework within the digital asset ecosystem. We must ensure that regulations do not stifle small, innovative companies, leading to an environment where only larger institutions can comply effectively with the legal standards.
Despite having the deepest liquidity in digital asset markets and hosting some of the largest issuers and exchanges, the U.S. still lacks a comprehensive market structure for digital assets. The GENIUS Act, signed into law by President Trump on July 18, 2025, represents the first significant step toward providing regulatory clarity for digital assets. By establishing a framework for payment stablecoin issuance, the GENIUS Act is set to catalyze the development of a modern digital payments system within the United States.
However, this is just one facet of the broader picture. Without a market structure that fosters innovation while safeguarding consumers and investors, the U.S. digital asset ecosystem may struggle to flourish, risking a retreat in the face of Latin America’s rapid adoption and Europe’s unified regulatory system. In July, the House passed the bipartisan CLARITY Act with an overwhelming vote of 294-134. The moment is now. We must align with global advancements by enacting a digital asset market structure by year’s end.
