Fragmented Oversight Threatens U.S. Crypto Leadership
Bloomberg highlights a growing crisis: the U.S. is losing its edge in digital finance—not due to lack of innovation, but because of collapsing regulatory capacity. While Congress advances bills like the Genius and Clarity Acts, enforcement bodies are too weak to uphold them.
A System on Uneven Ground
The stablecoin market is dominated by just two players, controlling over 80% of the space. Their potential failure could ripple through traditional finance, yet no single agency has full authority to monitor or act.
- The Office of the Comptroller of the Currency lost nearly a quarter of its staff by 2025 and remains compromised by cyberattacks
- The CFTC operates with only a fraction of the SEC’s budget and struggles to hire experts
- The Consumer Financial Protection Bureau, once the main tracker of crypto complaints, has been significantly undermined
Without real oversight, regulations become theater. Symbolic enforcement in a fraud-prone ecosystem endangers investors and undermines legitimacy. If the U.S. fails to rebuild competent supervision, it risks ceding control of the future of finance to more agile, better-organized jurisdictions.