With the passage of the GENIUS Act and the US House of Representatives passage of the CLARITY Act, the US reversed its adversarial approach to the digital asset ecosystem. While the Biden administration has spent the past four years injecting uncertainty into users and innovators of digital assets, other countries have pursued different approaches. This reality became clear when I traveled to Latin America and Europe with bipartisan members of the House Financial Services Committee and the House Agriculture Committee for a series of digital asset oversight meetings.
During discussions with both private sector and government policy leaders, I had the opportunity to see first-hand how digital assets are being used and evolving around the world. The point is clear. Latin America, Europe, and the United States each represent different paths in the development of digital asset markets, and together they highlight why the United States must enact a regulatory framework for digital asset markets.
Across Latin America, we have seen first-hand examples of the use of digital assets in the real economy. In Latin America, people are driving large-scale grassroots use of digital assets to pay, send and save. Last year, the region’s digital asset market was valued at $415 billion, with 46% of investments flowing into stablecoins, primarily denominated in US dollars.
As the Millais government begins to formalize its approach to the regulatory framework for digital assets, Argentina stands out as a digital asset pioneer in Latin America, with stablecoins providing an inflation-resistant store of value. Paraguay has become a hub for Bitcoin mining due to its hydroelectric power generation, while Mexico is monitoring fintech and cryptocurrencies with strong consumer demand. Additionally, Peru has signaled plans to incorporate digital asset exchanges into its anti-money laundering and anti-terrorist financing regimes and integrate digital assets into its national tax framework. In short, Latin America highlights attractive use cases for digital assets, including resilience to inflation, low-cost transfers, and financial inclusion.
Our members also met with European central bankers, financial regulators and private sector innovators. In 2023, the European Union (EU) legislated the Market for Cryptoassets (MiCA), creating a comprehensive regulatory framework around the digital asset ecosystem. MiCA aims to set the rules of the road for e-money tokens, asset reference tokens, service providers and stablecoin issuers across the EU. The EU market regulator ESMA and the European Banking Authority are working with EU member states to ensure harmonization of digital asset regulation.
Given that the EU got a head start in implementing rules and regulations for digital assets, it was insightful to hear about their experiences in developing these regulations as the US begins similar efforts. In discussions with European digital asset companies, it was clear that implementation is key to ensuring a functional framework for the digital asset ecosystem. We need to ensure that regulations do not crowd out innovative small businesses and create a situation where only large organizations can comply within legal frameworks.
Although the United States has the most liquid digital asset market and is home to some of the largest issuers and exchanges, it still lacks a comprehensive market structure for digital assets. The GENIUS Act, signed by President Trump on July 18, 2025, was the United States’ first step toward clarifying regulations for digital assets. The GENIUS Act will promote the creation of a modern digital payment system in the United States by establishing a framework for the issuance of payment stablecoins.
However, this is just one piece of the puzzle. Without a market structural framework that enables innovation while protecting consumers and investors, the U.S. digital asset ecosystem will not thrive and risks losing ground to rapid adoption in Latin America and harmonized regulatory regimes in Europe. In July, the House passed the bipartisan CLARITY Act by a vote of 294-134. Now is the time. We must institute a digital asset market structure by the end of the year to bring us in line with the rest of the world.
