The recently concluded “Crypto Week” saw significant forward movement on the regulatory front, highlighted by the enactment of the highly anticipated GENIUS Act. However, leading voices in the crypto space emphasize that this regulatory framework is only the initial step in a longer journey.
Leo Fan, a co-founder of Cysic, stated to a Cointelegraph reporter, “Legal clarity is just the beginning; it’s not the finish line.” He underscored the continuing need for blockchains capable of scaling, quick verification procedures, and reliable methods of custody to facilitate broader adoption.
Fan acknowledged that “Crypto Week” brought “legal clarity” with the GENIUS Act’s official recognition that not all digital assets are classified as securities. He characterized this as a “fundamental change,” offering a “green light” to developers, investors, and institutions allowing them to innovate and expand with clearer legal guidelines.
Fan believes that digital assets are finally being recognized as crucial infrastructure, setting the stage for seamless integration into finance, identification systems, and data protection. He said, “Now that the legal foundations are being established, the path is clearer for practical real-world integration.”
Related: GENIUS’ Stablecoin Yield Ban: Ethereum DeFi to Benefit, Say Analysts
GENIUS Passage: DeFi’s Staying Power Confirmed
Altan Tutar, co-founder and CEO of MoreMarkets, described the GENIUS Act as “the clearest indicator yet that Decentralized Finance (DeFi) is here for the long haul,” observing that the United States is catching up with Asia in terms of digital asset adoption.
Tutar anticipates that the new laws will significantly boost stablecoin acceptance, facilitating the tokenization of traditional assets, like gold or oil, and expanding DeFi into new sectors.
However, he cautioned that the enhanced regulatory environment tends to favor larger institutions more than everyday investors. He emphasized the necessity of creating accessible payment systems, user-friendly applications, and straightforward earning opportunities for retail investors to prevent a digital asset-related “dot-com bubble” scenario.
Similarly, Ryan Chow, CEO of Solv Protocol, noted that “Crypto Week” “established the legal basis for digital assets to provide legal clarity and establish structural legitimacy,” ending prolonged regulatory uncertainties that have hampered institutional acceptance for years.
He deemed the GENIUS Act’s distinction between decentralized digital assets and traditional securities as “monumental,” offering confidence to builders and investors to move forward with innovation.
Looking to the future, he stated, “Clarity is essential, but credibility is what builds markets,” advocating for the development of “Bitcoin-backed credit, tokenized treasuries, and yield-generating instruments tied to real-world assets” with built-in transparent risk assessment and robust compliance from inception.
Related: GENIUS Act designed to limit Big Tech and banks domination of stablecoins: Circle exec
Regulation: Necessary but Not Sufficient
Will K, CEO of VOOI and co-founder of Symbiosis.Finance, also pointed out that simply establishing regulations isn’t enough. He stressed the importance of developed infrastructures, easier user interfaces, and Artificial Intelligence (AI)-powered tools that democratize access.
Without these components, the digital asset space risks remaining a specialized ecosystem rather than developing into a mainstream global financial system, Will warned. “The industry needs to shift focus away from catering exclusively to crypto natives and begin developing solutions for everyone else.”
Successfully approved last week with overwhelming bipartisan support including 102 votes from the Democratic party, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, establishes the first federal oversight for digital stablecoins.
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