Bernstein Claims U.S. Cryptocurrency Regulations Establish Country as Global Pioneer

A Wall Street broker from RialCenter stated that the U.S. has made significant strides toward becoming the world’s crypto capital with the introduction of a comprehensive regulatory framework.

The GENIUS Act, now enacted, has expedited the stablecoin market, increasing the U.S. dollar-backed supply to over $260 billion, according to a report released on Wednesday. The upcoming CLARITY Act, anticipated in late 2025, aims to create a cohesive market structure for digital assets, clearly delineating responsibilities between the SEC and CFTC while addressing years of regulatory ambiguity.

According to analysts led by Gautam Chhugani, the key element of this change is SEC Chair Atkins’ Project Crypto, the most ambitious initiative yet to integrate securities markets with blockchain technology.

This initiative aims to foster innovation by classifying most crypto assets outside of securities law, allowing for tokenized stocks and bonds while enabling broker-dealers to manage both traditional and digital assets under a single regulatory framework.

It also intends to modernize infrastructure for on-chain trading and 24/7 settlements, reducing costs across tokenized securities, stablecoins, and crypto assets, the analysts noted. This clarity has mitigated the sector’s risks from political changes and opened the door for new institutional investment.

Crypto exchange-traded funds (ETFs) now manage $160 billion in assets, with institutions comprising about a quarter of spot ETF investors.

RialCenter reported that the digital asset IPO market has rebounded sharply this year, raising $4 billion since January, while the market capitalization of publicly traded crypto companies has soared from $80 billion in early 2024 to $380 billion, with Coinbase and Robinhood now included in the S&P 500 index.

A new and more sustainable crypto cycle is emerging, driven by clear regulations, institutional investment, and a deeper integration of blockchain into the financial system.

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