Nine months ago, Congress enacted the GENIUS Act, setting up the first federal regulatory framework for payment stablecoins. The impact was immediate: by the end of 2025, the stablecoin market had expanded by 49%, reaching $306 billion. Digital asset firms such as Circle and Ripple obtained provisional national banking charters from the OCC. Institutional investments previously on hold began entering these markets. Recruiters, who a year prior described an industry with ‘every protocol foundation bailing to the Caymans [tradingview.com],’ now report that 90% of senior crypto leadership searches are based in the U.S. The establishment of clear rules led to investment, institutional involvement, and the onshoring of activities previously moving abroad.
The Senate Banking Committee now faces a crucial task: applying a similar framework to the broader digital asset market, which is valued at $3.2 trillion with nearly 70 million Americans owning crypto assets – one in five citizens. The GENIUS Act focused on payment stablecoins, while the CLARITY Act proposes regulations for other areas, including trading venue registration and oversight, SEC-CFTC jurisdictional boundaries, token lifecycle compliance, and protection of non-custodial technologies.
These foundational rules will decide whether the next generation of financial infrastructure is built in America or elsewhere. Over the past decade, U.S. developer numbers fell by 51%, with nearly 90% of global CEX volume offshore. Without clear regulations, trading activity, protocol development, and institutional engagement may continue to gravitate towards jurisdictions like the EU, Singapore, and the UAE, which have already established regulatory frameworks.
The Senate Banking Committee, along with bipartisan offices, has dedicated two years to this effort. Senators Tillis and Alsobrooks deserve recognition for resolving the stablecoin yield issue in a bipartisan manner, despite it being one of the most contested provisions. The compromise extends the prohibition framework from GENIUS across digital asset market participants, though the industry made significant concessions.
While no legislative process is flawless, this outcome was achieved through sustained bipartisan engagement essential for serious legislation. Chairman Scott has navigated deep disagreements between the banking and digital asset sectors, bringing the Committee closer to a durable solution than before.
The time to act is limited. The legislative calendar allows only a short period to move such a comprehensive bill through committee review, floor consideration, and final passage. An imminent markup is necessary to keep this initiative on track for presidential approval by year-end.
The CLARITY Act passed the House with 294 votes, reflecting bipartisan support that clear digital asset market rules serve the public interest. The Banking Committee should schedule a markup promptly. The argument for advancing is stronger than ever.
The U.S. needs a clear, durable framework fit for this market and nation. Historically, America has led globally by embracing innovation, markets, and the rule of law. It’s time to do so again.