The United States stands at a pivotal moment in the evolution of digital finance. With visionary leadership, forward-thinking regulation, and growing bipartisan support, America has a real chance to become the world’s leading hub for blockchain innovation. Recent actions—from executive orders supporting blockchain development to the formation of dedicated crypto task forces—signal a shift toward a more innovation-friendly regulatory environment.
While the crypto industry has faced challenges such as litigation, de-banking, and regulatory uncertainty in recent years, the momentum is clearly changing. From the White House to Congress and key financial regulators, there's a growing recognition that clear, thoughtful policy can unlock immense economic potential. To help guide this transition, 11 leading experts have outlined key reforms across taxation, decentralization, staking, privacy, and financial resilience—offering a roadmap for how the U.S. can lead the next generation of the internet.
Why Decentralization Matters—and Why It Needs Incentives
– Miles Jennings
Decentralization isn’t just a technical feature—it’s a foundational principle that enables new forms of governance, ownership, and economic participation. By distributing control across networks rather than concentrating it in single entities, decentralization fosters competition, resilience, and user empowerment.
For years, centralized systems dominated because they were simply more efficient. But today’s blockchain technologies have matured to the point where decentralized networks can scale effectively and securely. The challenge now isn’t technological—it’s regulatory.
Without clear legal frameworks, builders face uncertainty when launching decentralized protocols. Overly broad regulations risk treating every contributor as a liable entity, discouraging innovation. To unlock the full potential of Web3, policymakers must create safe harbors for projects that genuinely distribute control.
👉 Discover how decentralized networks are reshaping digital ownership and financial freedom.
This means incentivizing decentralization through smart policy—such as time-bound exemptions for projects transitioning toward community governance or liability protections for developers who don’t retain unilateral control. Only then will the U.S. attract the next wave of global crypto talent.
The SEC Must Embrace the Digital Age
– Scott Walker & Bill Hinman
The Securities and Exchange Commission (SEC) plays a critical role in investor protection—but its current approach often fails to distinguish between traditional securities and decentralized digital assets. Applying outdated rules to innovative blockchain networks stifles progress.
The SEC can take six immediate steps to modernize its framework:
- Recognize that not all tokens are securities.
- Clarify criteria for when a network becomes “sufficiently decentralized.”
- Establish safe harbors for token issuers during early development.
- Streamline registration processes for compliant offerings.
- Increase engagement with technical experts.
- Support on-chain compliance tools.
These adjustments wouldn’t weaken oversight—they’d make it smarter and more effective. A forward-looking SEC can protect investors while fostering responsible innovation.
Unlocking the Potential of Staking in America
– Ji Kim & Alison Mangiero
Staking allows users to earn rewards by helping secure proof-of-stake blockchains like Ethereum. It’s a cornerstone of decentralized security—and a growing avenue for everyday Americans to participate in crypto economies.
Yet regulatory ambiguity threatens this ecosystem. Without clarity on whether staking services constitute unregistered securities offerings, platforms hesitate to expand operations in the U.S.
To ensure staking thrives domestically, regulators should:
- Confirm that staking rewards are not automatically taxable income at receipt.
- Distinguish between protocol-level staking and custodial staking services.
- Provide clear guidelines for disclosure and risk communication.
- Encourage domestic infrastructure development.
- Align with international regulatory trends.
By creating a supportive environment, the U.S. can become a global leader in secure, accessible staking solutions.
👉 Learn how staking turns passive ownership into active participation in blockchain networks.
Ending Mass Financial Surveillance
– Grant Rabenn
The Bank Secrecy Act of 1970 mandated widespread reporting of financial transactions—creating vast databases of personal information accessible to government agencies. While aimed at combating crime, this system has enabled routine surveillance of ordinary citizens.
Blockchain offers a better path: transparent ledgers with privacy-preserving capabilities. Instead of blanket monitoring, regulators can use on-chain analytics to target illicit activity without compromising civil liberties.
Reforming financial surveillance means:
- Reevaluating mandatory reporting thresholds.
- Limiting data retention periods.
- Promoting privacy-enhancing technologies (PETs).
- Ensuring proportionality in enforcement.
A modern financial system should protect both security and freedom.
DeFi as a Financial Safety Net
– Katherine Minarik
Imagine losing access to your bank account—with no explanation or appeal process. This is the reality for many victims of de-banking, where financial institutions cut off services based on internal risk models.
Self-custodied crypto assets offer a lifeline. Through decentralized finance (DeFi), individuals can store value, send payments, and access credit—without relying on traditional intermediaries.
DeFi doesn’t replace banks; it provides redundancy. In times of systemic stress or exclusionary practices, these open financial tools ensure basic economic rights remain accessible.
Let Traditional Finance Tap Into Blockchain Innovation
– Jenny Cieplak
Regulatory hesitation has prevented mainstream financial institutions from fully embracing blockchain technology. Arbitrary restrictions on asset tokenization block access to faster settlements, programmable money, and 24/7 markets.
By allowing regulated entities to issue and manage tokenized assets—such as stocks, bonds, or real estate—the U.S. could modernize its entire financial infrastructure. Clear rules would enable innovation while maintaining compliance with anti-money laundering (AML) and know-your-customer (KYC) standards.
The future of finance is hybrid: combining trusted institutions with cutting-edge technology.
DOJ’s Actions Against DeFi Could Backfire
– Miller Whitehouse-Levine & Amanda Tuminelli
Recent Department of Justice (DOJ) cases against DeFi protocols rest on flawed assumptions about control. Many protocols operate autonomously—governed by code and community votes—not by centralized teams.
Treating every contributor as a liable party undermines decentralization itself. Developers who publish open-source code shouldn’t face prosecution if others deploy it permissionlessly.
Policymakers must distinguish between centralized services and truly decentralized systems. Otherwise, enforcement risks pushing innovation offshore.
The Case for Decentralized Stablecoins
– Luca Prosperi
Today’s dominant stablecoins rely on centralized reserves—making them vulnerable to freezes, audits, and regulatory pressure. While useful, they replicate the very intermediaries that blockchain aims to disintermediate.
Decentralized stablecoins—backed by overcollateralized crypto assets or algorithmic mechanisms—offer censorship-resistant alternatives. Projects like DAI demonstrate that trustless, globally accessible digital dollars are possible.
For true financial inclusion, the U.S. should support research and adoption of decentralized stablecoin models.
The SEC Needs Rules Built for Crypto
– Scott Walker
Applying 20th-century securities laws to 21st-century technology leads to confusion and overreach. Blockchain networks function differently than corporations—they don’t have boards, dividends, or centralized management.
The SEC should develop tailored regulations that reflect these realities:
- Define what “decentralized” means legally.
- Create phased compliance paths.
- Recognize on-chain governance as a form of accountability.
A bespoke framework would reduce uncertainty and encourage responsible innovation.
Smart Crypto Tax Policy Can Boost U.S. Leadership
– David Kerr
Current tax rules treat every crypto transaction as a taxable event—even minor trades or gas fee payments. This creates an impossible burden for users and discourages participation.
Sensible reforms include:
- Exempting small transactions under $200.
- Deferring taxation on staking rewards until sale.
- Standardizing recordkeeping across wallets and exchanges.
- Updating cost-basis reporting rules for DeFi activities.
Clearer tax guidance would simplify compliance—and keep talent in America.
Should the U.S. Create a Bitcoin Strategic Reserve?
– Christian Catalini
Proposals for a national Bitcoin reserve mark a turning point. Holding BTC on the balance sheet signals confidence in digital assets—and strengthens America’s position in a multi-currency global system.
But it’s just the beginning. A broader strategy should include:
- Research into central bank digital currencies (CBDCs).
- Investment in blockchain infrastructure.
- International coordination on digital asset standards.
Bitcoin isn’t just an asset—it’s a geopolitical tool.
Frequently Asked Questions (FAQ)
Q: Why is decentralization important for innovation?
A: Decentralization reduces single points of failure, promotes censorship resistance, and enables open participation—key traits for building resilient digital economies.
Q: Is staking legal in the U.S.?
A: Staking itself is not illegal, but regulatory uncertainty around service providers remains. Clear rules would allow U.S.-based platforms to compete globally.
Q: Can DeFi replace traditional banking?
A: Not entirely—but it provides alternatives during outages or exclusion events, enhancing overall financial system resilience.
Q: Are stablecoins safe?
A: Centralized stablecoins carry counterparty risk; decentralized ones reduce reliance on intermediaries but require robust design to maintain pegs.
Q: How does blockchain improve financial privacy?
A: Unlike opaque banking systems, blockchains offer transparency and privacy through cryptographic techniques—enabling targeted oversight without mass surveillance.
Q: Will crypto taxation get simpler?
A: With growing legislative attention, reforms are likely—especially around small transactions and DeFi use cases.
👉 See how leading platforms are simplifying crypto access and security for millions worldwide.