the world’s largest cryptocurrency exchange, is poised to improve trust, transparency, and accountability throughout the market. Meanwhile, most global financial centers have introduced clear regulations for the crypto industry.

Despite this progress, the United States risks becoming an outlier if it does not establish new rules in 2024. Policymakers can choose among three potential paths to managing risks and opportunities in the crypto market: regulation, legislation, and designation.

Two years ago, US President Joe Biden took a huge step toward providing regulatory clarity by issuing his Executive Order on Ensuring Responsible Development of Digital Assets. Since then, however, legislative attempts have stalled, and the US has fallen behind other countries in regulating the sector, despite the fact that virtually all digital assets are priced in dollars.

The irony is that US-led bodies such as the Financial Stability Board, the President’s Working Group on Financial Markets, and the Financial Stability Oversight Council have been at the forefront of global efforts to regulate the crypto market. As chair of the FSOC, Treasury Secretary Janet Yellen has also urged Congress to advance legislation to regulate dollar-denominated stablecoins. Federal Reserve Chair Jerome Powell has echoed these calls.$BTC