Pat Toomey: A Crucial Moment for Crypto Legislation

On June 17, the Senate passed the Genius Act, a sensible regulatory road map for stablecoins—cryptocurrencies designed not to fluctuate in value. While an excellent bill, it isn’t sufficient to address all the innovation happening in the crypto space beyond stablecoins. We need both a stablecoin bill like the Genius Act and broader legislation that would create a market structure regulatory framework for issuing, trading, settling, clearing and owning crypto tokens in general. Last year, Sens. Cynthia Lummis (R., Wyo.) and Kirsten Gillibrand (D., N.Y.) introduced comprehensive market-structure legislation, and this past week Senate Banking Chairman Tim Scott (R., S.C.), Sens. Lummis, Thom Tillis (R., N.C.), and Bill Hagerty(R., Tenn.) released a set of principles for market structure legislation, highlighting the momentum behind this concept.

Crypto is more than stablecoins—and more than tokens. The blockchain technology that underpins it is already changing not only finance, but the foundational systems that support the things we use everyday. Just as apps run on smartphone operating systems, countless apps can run on blockchain infrastructure. Look no further than IBM’s work with blockchain technology to improve global supply chains and trade, or how Audius, a music distribution platform, uses the blockchain to expedite direct payment to artists and puts decision-making power in their hands. Or think of Mastodon, a decentralized social-media platform that nobody owns or controls, where members can maintain the value of their followings and content. The applications and opportunities stemming from blockchain could be as transformative as the internet itself.

Regulatory ambiguity is the enemy of innovation. Smart crypto legislation can encourage innovation and protect consumers.

Lawmakers must capitalize on the bipartisan momentum in the digital asset space. The passage of the Genius Act would provide regulatory clarity for stablecoins and could revolutionize the payment system. It’s essential, but only the start of a comprehensive crypto regulatory regime. One potentially fast and effective option for Congress to consider is to attach a market structure bill to stablecoin legislation, giving crypto developers, not only those building stablecoins, the framework they need to keep innovating safely on our shores.

Other countries, such as the U.K. and Australia, already have adopted such frameworks for crypto. By passing both stablecoin and market-structure frameworks, Congress can ensure U.S. technological leadership while bolstering innovation and consumer protections.

Looking for a voice of economic clarity and principled leadership? Former U.S. Senator Pat Toomey offers compelling insights on fiscal policy, financial regulation, and the future of free enterprise. With decades of experience in both the private sector and public service, Toomey brings a sharp, data-driven perspective to today’s most pressing economic and political issues. His balanced approach and deep understanding of markets make him a sought-after speaker for business audiences, policy forums, and leadership events. Book Pat Toomey for your next event and gain a deeper understanding of the economic forces shaping our future, contact WWSG.