Financial Insights That Matter
The next great technological revolution is unfolding, and the United States is at risk of sitting on the sidelines. While countries like Singapore, the UAE, Switzerland, Hong Kong and Germany aggressively court blockchain innovators with clear policies and investment incentives, the U.S. is bogged down in regulatory uncertainty. For decades, America has led in shaping the internet, finance and technology — but without swift action, we risk ceding our competitive edge in the digital economy to nations that are moving faster and thinking bigger.
Blockchain is poised to become one of the most transformative technologies of the internet era, reshaping industries and driving economic growth. Sixty-five million Americans already own or use cryptocurrency. It’s far more than digital money; it has the potential to revolutionize finance, security and data management. The question is: Will the U.S. embrace this shift or allow other nations to dictate the future?
Momentum is building. With a more crypto-friendly Congress and a White House actively supporting digital assets, the opportunity to advance U.S. policy has never been stronger. A newly established federal cryptocurrency workgroup was recently tasked with shaping the nation’s digital asset strategy, but Congress must act decisively to provide the regulatory clarity essential for businesses to innovate and thrive. Reintroducing and passing a revised Financial Innovation and Technology for the 21st Century Act (FIT21) is a crucial step. This bipartisan bill, which previously passed the U.S. House but stalled in the Senate, would create a clear regulatory framework for digital assets, balancing innovation with strong consumer protections.
FIT21 clarifies the jurisdiction of the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), eliminating regulatory uncertainty that stifles technological advancement and economic growth. By setting clear rules of the road, this legislation would encourage responsible innovation and keep blockchain startups and high-tech jobs in the U.S. instead of driving them overseas. Enacting FIT21 is key to securing America’s leadership in financial technology and ensuring businesses can thrive at home.
A well-defined framework wouldn’t just provide clarity; it would lay the foundation for a more efficient, transparent, and resilient financial system. By embracing blockchain’s ability to reduce transaction costs, enable instant settlements and drive financial innovation, the U.S. can modernize its financial infrastructure while ensuring it remains the global standard. Without action, the U.S. is at a competitive disadvantage, driving top talent and investment abroad while other nations position themselves as leaders in blockchain innovation.
This isn’t just a national issue. States like Michigan are already investing in blockchain’s future, but without federal support, their progress is at risk. Michigan is home to a growing blockchain ecosystem, yet uncertainty threatens its potential. College DAO, founded at the University of Michigan, is the world’s largest student blockchain network, connecting thousands of students across 150 top universities. By bridging academia and industry, it equips students with the skills to become future leaders in blockchain innovation. Yet without a clear regulatory framework, Michigan won’t just lose these innovators — it will lose the businesses, jobs and investment that come with them to countries with clearer policies.
The state of Michigan Retirement System recently invested more than $6 million in Bitcoin, recognizing its long-term value as a scarce asset resilient to inflationary policies. This investment reflects a strategic effort to diversify reserves with an asset that, over time, has demonstrated strength against monetary debasement compared to fiat currency and traditional investments. More recently, bipartisan state legislation was introduced to expand cryptocurrency investment opportunities and allow Bitcoin mining at industrially zoned properties. These are steps in the right direction, but without federal action, states will be left patching together a fragmented approach.
Michigan’s congressional delegation has a rare opportunity to lead. This is not a partisan issue, it’s an economic and technological one. I urge them to actively engage with top leaders in emerging technology to deepen their understanding of digital assets and the opportunities they present for our economy.
The future of the digital economy is being written now, and America must decide whether to lead or be left behind. Congress has a choice: enact the policies that will keep innovation, talent, and investment in the U.S., or allow our competitors to seize the opportunities of tomorrow.
Elizabeth Hansson is president of the Stand with Crypto Michigan Chapter and Chief Technology Officer of Blockchain Exploration Corp
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