It is crypto Week. The Congress can make the US financial system future-proof: Summer Mersinger

When the 1934 Congress launched the Securities and Exchange Commission, he reacted to the numerous failures of an outdated financial system. The resulting regulatory structure formed the basis for almost a century of American financial dominance. Today the congress faces a similar challenge: the opportunity to modernize America's financial infrastructure for the digital age.

Two legal projects that are currently available to the legislators, the Genius Act to StableCoins and extensive reforms of the market structure, represent more than just gradual political adjustments. Together they form America's response to a fundamental change in the way money circulates worldwide.

The operations are considerable. The 240 billion dollar stable market, It is expected that it will reach 3.7 trillion US dollars by 2030has developed as a critical financial infrastructure that operates largely outside of formal regulatory framework. Almost all important stablecoins voluntarily bind themselves to the dollar, which creates an interesting phenomenon: private companies develop sophisticated technologies in order to have the American currency work better than existing payment systems.

This development takes place, while America's monetary hegemony is facing the most serious challenge for generations. China's initiatives for the digital Yuan, alternative payment systems of the BRICS countries and growing reluctance Among trading partners to act in dollars, a coordinated effort signals to avoid American financial influence.

Stable coins offer Americas most effective reaction. They expand the global accessibility to the US dollar, while preserving the transparency and the legal state advantages that make the American financial system attractive. The genius act would formalize this system by determining reserve standards, examination requirements and consumer protection measures that make the dollar -submitted digital assets more secure and more attractive than alternatives.

However, the currency infrastructure alone is not sufficient. The current approach of applying regulations of the 20th century to the 21st century technologies has produced predictable results: Innovations migrate into legal systems with clearer and more inviting regulations.

The Federal Court ruling from November, the left the extended dealer definition of the SEC illustrates the problem. The supervisory authorities had stretched the legal language so far beyond the original purpose that judicial intervention became inevitable.

Digital asset platforms integrate functions that the traditional financial world deliberately separates, and create new efficiency gains in addition to new risks. To force these platforms into regulatory categories designed for other business models does not lead to clarity or protection. A comprehensive legislation on the market structure would create tailor-made registration framework that actually corresponds to the functionality of these companies-a concern for which the crypto ecosystem has been committed for years.

The integration obligation is of crucial importance here. The US financial supremacy in the 20th century did not result from a single innovation, but from systematic coordination of monetary policy, market regulation and institutional supervision. Today's challenge requires a comparable coherence. A digital dollar infrastructure without a suitable market structure makes innovations susceptible to regulatory uncertainties. Market structure reforms without clarity with regard to stable coins limit the global reach of American monetary policy.

International Competition this urgency exacerbates. The markets in crypto-assets (MiCA)-Ordinance of the European Union, the United Kingdom's Stable Coin framework as well as similar initiatives across Asia represent direct challenges for the American leadership role in the field of financial technology. These framework works may not be superior to what America could develop, but they often exist, which is often a decisive advantage in the attraction of global investments and innovations.

In fact, there is another step that the elected American official can take to ensure that the promise of cryptocurrencies will not be undermined: say goodbye Legislation of MP Tom Emmer The development of a digital central bank currency (CBDC) to ban in the United States. While several other countries have discussed such an introduction that American legislators should support our domestic data protection ideals and the broad anti-monitoring mood by advocating this important legislation.

The 68-30 farewell to the Genius Act by the Senate indicates growing political recognition of the political importance of crypto and the realities of international competition. Even skeptical democrats recognize the situation, says Senator Mark Warner (D.-VA) observed recentlythat, American legislators should not shape the regulation of cryptocurrencies, “others will do it – and not in a way that serves our interests or democratic values.”

President Trump's commitment to sign the legislation before the August break creates both opportunities and deadlines. The political basis seems solid: cross -party support, industry -wide consensus on essential principles and competitive pressure, which occasionally promotes effective government.

Nevertheless, significant obstacles remain. The capacity of the congress for technical legislation is limited in a heated, party -political climate, and the temptation to strive for symbolic instead of systematic reforms is great. The complexity of the integration of stablecoin regulation with more comprehensive market structure reforms requires exactly the type of patient, coordinated political design that American politics occasionally has difficult to do.

The decision before the congress is ultimately clear: lead the development of a global digital financial infrastructure or give this role to competitors. For the first time in years, the economic logic, the political swing and the strategic necessity agree. Whether the American legislators can use this convergence will not only determine the fate of cryptocurrency regulation, but also the role of America in the next generation of global financial world.

The regulatory framework of the 1930s served America well for almost a century. His digital successor, if he is properly designed, could serve longer.