The next great technological revolution is unfolding, and the United States risks sitting on the sidelines. Countries like Singapore, the United Arab Emirates, Switzerland, Hong Kong and Germany are actively bringing blockchain innovators with clear policies and investment incentives to justice, but the US is plagued by regulatory uncertainty. For decades, America has guided the shaping of the internet, finance and technology, but without quick action, there is a risk of giving away to countries that are moving faster and thinking bigger about their competitiveness in the digital economy.
Blockchain has become one of the most transformative technologies of the Internet age, poised to rebuild industries and drive economic growth. 65 million Americans already own or use cryptocurrency. That’s far more than digital money. It could revolutionize finance, security and data management. The question is, will the US accept this change or allow other countries to direct the future?
Momentum is being built. With more crypto-friendly Congress and the White House, which actively supports digital assets, opportunities to promote US policy are stronger than ever. The newly established federal cryptocurrency workgroup was recently tasked with shaping the country’s digital assets strategy, but Congress must act decisively to provide regulatory clarity, essential to innovation and prosperity. Reintroducing and passing revised financial innovations and technologies of the 21st Century Act (FIT21) is an important step. This bipartisan bill, previously passing US homes but stagnated in the Senate, creates a clear regulatory framework for digital assets, balancing innovation with strong consumer protection.
FIT21 clarifies the jurisdiction of the Commodity Futures Trade Commission (CFTC) and the Securities and Exchange Commission (SEC) and eliminates regulatory uncertainty that will curb technological advancements and economic growth. By setting clear rules for roads, the law encourages responsible innovation and maintains blockchain startups and high-tech jobs in the US instead of driving them abroad. Enacting FIT21 is key to ensuring American leadership in financial technology and ensuring businesses can thrive from home.
A well-defined framework does not only provide clarity. It lays the foundation for a more efficient, transparent and resilient financial system. By adopting the ability to reduce blockchain transaction costs, enable immediate settlements and promote financial innovation, the US can ensure that it remains global standard while modernizing its financial infrastructure. Without action, the US has brought competitive disadvantages, driving top talent and investment overseas, while other countries have established themselves as leaders in blockchain innovation.
This is not just a national issue. States like Michigan are already investing in the future of blockchain, but without federal support, their progress is at risk. Michigan has a growing blockchain ecosystem, but uncertainty threatens that possibility. Founded at the University of Michigan, College Dao is the world’s largest student blockchain network, connecting thousands of students at 150 top universities. Equip students with the skills to become future leaders in blockchain innovation by bridging academia and industry. But without a clear regulatory framework, Michigan will not only lose these innovators. It will lose business, jobs and investment that will come to a country with clearer policies.
Michigan’s retirement system has recently invested more than $6 million in Bitcoin, recognising its long-term value as a rare asset that is not resilient to inflation policies. This investment reflects strategic efforts to diversify reserves with assets that demonstrate their strength against financial bases compared to Fiat currency and traditional investments. Recently, bipartisan state laws have been introduced to expand cryptocurrency investment opportunities and allow Bitcoin mining in industrial zone facilities. These are steps in the right direction, but without federal action, the state will remain a fragmented approach.
Michigan’s legislative delegation has an unusual opportunity to lead. This is not a partisan issue, it is an economic and technical issue. I encourage them to actively engage with top leaders in emerging technologies to develop an understanding of digital assets and the opportunities they present for our economy.
The future of the digital economy is written now, and America must decide whether to lead or get left behind. Congress has options. We will establish policies to maintain innovation, talent and investment in the US, and enable our competitors to seize the opportunities of tomorrow.
Elizabeth Hansson is president of the stands of the Crypto Michigan branch and Chief Technology Officer of Blockchain Exploration Corp.
