U.S. Treasury Secretary Scott Bessent claimed on Friday, August 8 that the nation has officially stepped into the “golden age of crypto”. His remark came days after the stablecoin-focussed GENIUS Act was signed into a law, and the SEC announced plans to update the U.S. securities laws to be more compatible with digital assets –roping-in feedback from the industry.
In a post on X, Bessent invited Web3 firms to set up and expand operations in the U.S. under President Donald Trump’s crypto-supportive administration.
“We are exploring new possibilities in decentralized computing and digital payments to unlock the potential of blockchain technology. Launch your protocols here. And hire your workers here,” the Treasury Secretary noted.
Crypto regulations take centre stage in U.S.
Bessent’s U.S. invite to the crypto firms follows the launch of “Project Crypto” this week. This initiative by the SEC aims to clarify the position of digital assets as securities alongside existing financial instruments like stocks, bonds, notes, and debentures among others.
As part of Project Crypto, the U.S. plans to make its market lucrative and enticing for crypto companies, many of which exited the U.S. owing to regulatory confusion and a scrutinizing oversight under former President Joe Biden.
President Trump has remained an avid critic of Biden’s approach towards digital assets, referring to it as a “war on crypto”. During his election campaign last year, Trump had vouched to transform the U.S. into the crypto capital of the planet. Since his return to the White House as the 47th U.S. President, Trump has taken multiple steps to make America’s market and financial ecosystem friendly with crypto.
This month, the CLARITY Act, that is centered around solidifying a market structure for crypto sector, was also passed by the U.S. regulators. The proposed laws are now being analyzed to see if any amendments could make its provisions better and clearer.
Andreessen Horowitz (a16z) flags policy lags
Amid the ongoing regulatory overhaul in the U.S., venture capital firm Andreessen Horowitz (a16z) has highlighted certain concerns regarding the crypto rules.
In an open letter to the U.S. Senate Banking Committee — a16z urgently called for more clarity on ancillary assets that can be expianed at tokens that are sold with an investment contract but no equity, divident, or governance rights for the buyers.
The capital firm said if the definition of ancillary assets is not improved, the SEC’s idea to make the securities laws more crypto-friendly could not serve the intended purpose.
“A sweeping change to securities law introduces significant uncertainty and goes far beyond what is necessary to resolve the questions posed by digital assets and blockchain technology,” the letter said, warning that the approach could erode federal securities laws “without any tangible benefit”.
The letter also called for the implementation of a control-focussed framework to oversee the decentralized space — clarifying core tech practices around consensus algorithms and smart contracts that make for crucial elements of the overall blockchain ecosystems.