Crypto crisis in the USA: Urgent need for legislation before the elections!

Crypto crisis in the USA: Urgent need for legislation before the elections!

The discussion about cryptocurrency regulation in the US is reaching a crucial point. Marta Belcher, president of the Blockchain Association and Filecoin Foundation, said on Cointelegraph's Decentralize podcast that the window of opportunity to pass effective crypto laws is quickly closing. Belcher warns that there will be long-term consequences for the industry if lawmakers do not react promptly. She is calling on lawmakers and industry leaders to take action before the 2026 midterm elections so as not to lose the momentum gained so far.

Belcher stresses the urgency that legislation clarifying key aspects of the crypto industry should be passed before the start of next year, ideally before the August holidays. Otherwise, Congress’s stance on cryptocurrencies after the election could be uncertain. This uncertainty could result in more crypto projects moving abroad, as has happened in the past due to a hostile regulatory environment.

Create stable foundations

A new glimmer of hope is now emerging in crypto regulation. The US Senate has passed a bill to regulate stablecoins, known as the ‘GENIUS Act’. Stablecoins are cryptocurrencies that are pegged to stable assets such as the US dollar. The Senate Banking Committee has launched the draft that regulates the legal status and supervision of stablecoins.

Key points of the bill include federal authorization for stablecoin issuers to ensure consumer protection, clear funding requirements for stablecoins, and increased oversight by the Federal Reserve and other financial authorities. Particularly worth mentioning is the ban on algorithmic stablecoins without corresponding reserves. These regulations respond to the rapid growth of stablecoins such as Tether (USDT) and USD Coin (USDC), which are increasingly being used for cross-border payments.

Reactions and concerns

The passage of the bill represents a step forward in crypto regulation. But analysts and industry representatives also express concerns. Regulations that are too strict could inhibit innovation and squeeze out smaller emitters. In particular, the stricter rules for stablecoin reserves could make the introduction of decentralized stablecoins more difficult. This legislation could have far-reaching global implications and potentially influence other countries in their regulation of stablecoins.

With the latest regulation, there is now an expectation that the entire Congress will pass the bill in the near future. The EU has already introduced clear guidelines for stablecoins with the MiCA legislation, which increases pressure on the US to also set proactive standards.

The coming period is crucial for the crypto industry. Belcher and other industry representatives are hoping for an industry-wide compromise to achieve legislation that is seen as essential to survival in the long term.

The coming months could therefore determine the course of crypto regulation in the USA and potentially influence the entire industry. The need for clear regulation is unquestionable, not only for consumer protection, but also for the growth and advancement of crypto innovation in a rapidly changing global market.

Informative details on current developments in crypto regulation can be found at Cointelegraph and Crypto Insiders: Cointelegraph, Crypto Insiders.