Author: Charles Scrimalli, Elizabeth Rivette
Every major technological revolution, from electricity to the Internet, began in chaos. But each period of turmoil eventually found its footing through pragmatic governance. Lawmakers then set the ground rules, thereby instilling stability and public trust, and in doing so transformed experimental technology into the infrastructure of modern civilization.
Today, we are at a similar tipping point when it comes to digital assets.
Blockchain and cryptocurrency technology is redefining the global financial landscape. More than 50 million Americans are already participating in this transformation, including more than 1.5 million Pennsylvanians. These innovations promise a faster, more inclusive, and fundamentally transparent ecosystem that can reduce costs, eliminate intermediaries, and return control to individuals.
Digital financial systems offer the potential to eliminate intermediaries, reduce costs and give people around the world more control over their money.
But even as innovation accelerates, the U.S. regulatory structure remains mired in the past. The future of digital currencies is at risk not because the technology isn’t working, but because the legal system has yet to adapt.
Cryptocurrency and blockchain technology are not a passing fad. But despite that potential, American companies face fragmented state regulations and vague federal guidance that stifle economic creativity and push opportunities overseas.
Currently, there is no clear and consistent federal framework for how these digital assets should be handled. This is a huge issue not only for crypto enthusiasts, but also for American ingenuity, national security, and the millions of everyday people who trade and invest in this ecosystem with little or no protection. This regulatory vacuum creates uncertainty and a strategic disadvantage for the United States in the global financial technology race.
Digital assets currently exist in a regulatory “no man’s land.” Companies are not routinely aware of which laws apply when, or whether regulators will be drawn into disputes within their jurisdictions, and retail investors are left to their best guess as to whether the platforms they use are compliant or at risk of fraud.
Some tokens are treated as securities under the Securities Act of 1933, others are treated as commodities under the Commodity Exchange Act, and many others are treated as either or both. The lack of clear legal definitions and jurisdictional boundaries has a chilling effect on innovation in this area. Companies are stuck attempting “tacit compliance” without reliable guidance or predictable enforcement. As a result, consumers face the worst of both worlds: unpredictable enforcement and inadequate safeguards.
If you’ve ever wondered why so many crypto companies are based overseas instead of in the United States, the answer is simple. Because those countries have already set the rules. The US isn’t like that.
Historically, the United States has responded better and faster to technological disruption. From the Telecommunications Act of 1934 to the Electronic Signatures in Global and Domestic Commerce Act of 2000, Congress has repeatedly demonstrated its ability to modernize its regulatory framework in response to emerging technologies. Digital assets deserve the same attention and treatment.
In the absence of clear laws, the U.S. cryptocurrency landscape is a mix of imagination, confusion, and legal risk. Entrepreneurs are forced to guess, and blockchain entrepreneurs are flying blind. Potential startups are afraid to start, hire, or invest because enforcement feels arbitrary and there is no reliable way to comply.
This regulatory gray area neither protects consumers nor punishes bad actors. It only narrows economic foresight and sends promising ideas abroad.
Other countries are not waiting. They are creating a welcoming environment for Bitcoin and other digital assets, but the US is lagging behind. Other jurisdictions such as the European Union, United Kingdom, Singapore, and Japan have already adopted comprehensive frameworks for digital asset regulation. These schemes provide clear definitions, consumer protection standards and registration pathways. As a result, these jurisdictions are now attracting the same innovation capital that once defined U.S. technological leadership.
This is not how we have dealt with innovation in the past, so we cannot continue to stumble. We need to put proactive guardrails in place for digital assets, including clear, consistent, and fair rules, as well as market structures. There has been recent movement in Washington DC regarding the GENIUS and CLARITY Acts, and we need everyone in Congress to be on the same page. These recent legislative proposals demonstrate bipartisan recognition of this issue, but half-measures and interagency memoranda are not enough.
It means giving authority over crypto assets to one institution and distinguishing between securities and products. Regulatory frameworks must also close loopholes and establish clear rules for exchange platforms to protect investors and hold bad actors accountable. The CLARITY Act aims to solve this problem, but it has not moved since it was passed by the U.S. House of Representatives on July 17, 2025.
Cryptocurrency will not disappear. The blockchain technology that undermines cryptocurrencies is used for everything from faster payments to digital identity to real estate ownership. It is the foundation of the new financial world. It’s more open and decentralized.
Don’t get me wrong. Regulation is not the enemy of innovation. Smart regulation enables innovation by establishing guardrails that allow new ideas to flourish without putting the public at risk. But the key word here is smart. It’s not outdated, redundant, or obscure.
Doing nothing is not a viable strategy. The world of digital assets is growing with or without Washington’s blessing.
If we want to achieve that growth responsibly and within our borders, we need clear and logical federal guardrails. Sensible federal regulation is about a fair and consistent playing field and signals to the world that America is serious about leading in this new era.
Congress has the opportunity and responsibility to act, and Pennsylvania’s delegation, including Sens. Dave McCormick and John Fetterman, is uniquely positioned to lead the way. Write your rules now to avoid being late tomorrow. The Commonwealth has a growing fintech and blockchain sector and is expected to benefit from regulatory modernization. Smart regulation is not the enemy of this innovation.
That’s the basis of it.
Charles Scrimalli is an associate at Bull Blockchain Law and regularly serves as an advisor to asset management firms and blockchain companies. Elizabeth Rivette is an associate at Bull Blockchain Law, where her practice focuses on intellectual property law, corporate law, and commercial litigation.
