In the past century, the United States has ruled as the world’s economic superpower. The key to this sustained economic power is a legislative environment that encourages and enables technological innovation. From semiconductors to personal computers for Internet 1.0 and 2.0, US companies have led to developing advanced technologies because our country strengthens its builders and creators. Unfortunately, when it comes to web3 – the next generation of the Internet built on blockchain, digital assets and cryptocurrencies – we are at risk and risk falling further afterwards.

In 2023, the European Union adopted extensive cryptocurrency -control [americanbar.org]And several meaningful provisions came into force last summer. China’s central bank has promoted its digital yuan [forbes.com]which threatens the US dollar role as the global reserve currency. The US is just watching while our opponents move pieces on the chessboard.

It is absolutely important to our country’s future that the United States adopts clear and sensible cryptocurrency rules that promote innovation and hold web3 jobs within our borders, protect consumers and maintain the dominance of the US dollar.

We should start with stableecoins.

For newcomers are stableecoin’s cryptocurrencies, whose values ​​are tied to national currencies or high quality financial assets. This gives them stability and allows them to play a crucial role in the digital economy, combining the transaction speed and low cost of digital assets with the price stability of traditional reserve currencies. The United States is already playing a major role in this space. According to a report, more than 95% of stableecoins are “linked to the US dollar.”

The many use cases of stableecoins have served them support from decision makers across the ideological spectrum. Conservatives appreciate their low costs, friction -free and immediate payment skills, which can lower the cost of merchants and consumers and spur startups and financial activity. Progressive appreciates their use to lower the cost of transfers and reach the underbanking and underrated and their ability to increase access to basic financial services.

It must be acknowledged that stabsecoins, as with any new technology, have challenges. Some stablecoins, supported by complex algorithms instead of stable reserve currency, have collapsed due to design errors. In contrast to bank deposits, stablecoins are also not FDIC insured, creating risks if the issuer goes bankrupt. While there has been concern for money laundering, stableecoins are not abused more than traditional cash. But in order for the public to trust stableecoins, and in order for companies to adopt them, we need clear rules to provide consumer protection, manage issuers and protect against money laundering.

Bipartisan indicative and establishment of national innovation for US StableCeCons (Genius) ActAt As I introduced February 4, along with senators Bill Hagty, Cynthia Lummis and Tim Scott, Will tackle these challenges and create a clear regulatory environment that allows the cryptocurrency to thrive.

It protects consumers by holding stablecoin issuers to strict reserve requirements, requiring them to maintain one-on-one reserves in cash and cash equivalents. The bill prohibits the issuance of unbacked, algorithmic stableecoins, whose collapse has led to significant losses. To tackle their use for illegal purposes, the approved stablecoin issuers require us to adhere to us with down-whitewashing money and sanction rules. Finally, the bill clarifies rules on conservatory and procedure if a stableecoin issuer experiences insolvency.

While this bill will undoubtedly be adjusted as it moves through Congress, it has already received input from a broad cut of stakeholders, including industrialists, academic experts and federal supervisory authorities. It is a true Bipartisan effort that will strengthen innovators and builders while proclaiming bad actors.

Laying the basis for the next century of American exceptionalism is a mission that should unite us all, and placing the United States in the forefront of the next iteration of the Internet is the key to this goal. Stableecoins are already playing an important role and it is critical that we are now acting to maintain our position as leader in global economic competitiveness.