America stands at a crypto crossroads. We can lead the next era of financial innovation, expanding opportunity for hardworking Americans to grow their savings and investments and strengthen U.S. economic leadership. Or we can fumble this opportunity, allowing regulatory uncertainty and disagreement on a small fraction of crypto market structure legislation to push innovation abroad.
As a former member of Congress, I understand that legislating is difficult, especially when tackling complex issues like establishing a market framework for digital assets. But deciding to do nothing is a decision. And inaction is the worst action Congress can take — and it carries a cost. Every day Congress delays, we cede ground to competing nations and hold back innovation in America.
Digital assets like tokenized securities are the future of financial markets. For millions of Americans, especially younger professionals saving for homes, paying down student loans, or building retirement security, digital assets can offer genuine pathways to grow wealth and economic opportunity. The question isn't whether this innovation will happen. The question is whether it will be embedded with American economic values and built to endure for generations to come.
Congress has been working to bring clarity to digital asset markets for many months. But disagreements over a portion of the bill that would exempt decentralized finance, or DeFi, from existing investor and market protection laws has become a flashpoint and has stalled progress.
Some argue we should move fast for the sake of innovation, even if it means breaking things. But this approach would put investor safeguards at risk, jeopardizing the lifelong savings of 6 in 10 Americans — including many teachers, first responders, and military personnel — who hold invested retirement plans. Others argue we should wait for perfect rules before making progress, but this approach is also flawed: moving too slowly risks losing momentum and would push American economic leadership to the back of the line.
The solution is somewhere in the middle: Congress must strike a balance between moving too quickly and waiting to craft the perfect piece of legislation. This requires acknowledging that core investor protections and innovation are not in conflict. These principles have worked in tandem for decades to make U.S. financial markets the envy of the world. Congress should be able to agree on the importance of these time-tested protections.
By contrast, the proposed DeFi exemptions raise complex questions about registration and licensing, disclosure requirements, anti-fraud measures, and other safeguards that cannot be solved without additional due diligence. Attempting to force those issues into the current package risks creating loopholes, weakening market integrity, and delaying clarity for the entire digital asset ecosystem, as this one section remains the epicenter of faltering negotiations.
The most responsible path forward is for Congress to advance market structure where there’s already consensus and provide regulatory certainty, foster innovation under responsible guardrails, and position the U.S. as a global leader in digital assets while leaving time for a separate, thoughtful debate on DeFi exemptions.
I understand firsthand why legislation stalls. Differences in opinion, competing priorities, and partisan disagreements can slow legislation for years. But the stakes for moving forward on where there’s agreement now couldn’t be higher. America's leadership in financial innovation depends on our willingness to act decisively and thoughtfully.
Providing greater regulatory clarity today, combined with lawmakers’ commitment to get investor protections right, will enhance market integrity, create prosperity for all Americans, and keep innovation where it belongs: here at home.
