US Will Lose Global Lead in Blockchain if Regulations Are Not Passed Soon

Panelists at the Wyoming Blockchain Symposium said it is not too late for the United States to catch up to the crypto regulatory frameworks in other regions, but warned that inaction might lead to stagnation and the US falling behind other countries.

“I don’t think it’s too late, even with the Markets in Crypto Assets (MiCA) in the European Union (EU),” Sylvia Favretto, general counsel and corporate secretary at Mysten Labs, the developer behind the Sui network, said. 

However, she added that the window of opportunity is “small” and urged immediate action. Stuart Alderoty, chief legal officer at Ripple, said:

“If we seize on the opportunity now and get the market structure right, I think we win. If we don’t get the market structure right and the switch flips back to a more hostile policy or regulatory environment, I think there is a very credible risk that we will lose out to the EU, to APAC, or maybe even to the Middle East.”

Pictured from left to right, CNBC host Talia Kaplan as moderator, Miles Jennings, head of policy and general counsel at a16Z, Summer Mersinger, CEO of the Blockchain Association, Stuart Alderoty, Ripple chief legal officer and Sylvia Favretto, Mysten Labs general counsel. Source: Wyoming Blockchain Symposium

Summer Mersinger, CEO of the Blockchain Association, a crypto advocacy group, warned that the path toward regulatory clarity “could be a long process,” as US lawmakers and regulatory officials come to a consensus on cohesive crypto policy ahead of the 2026 midterm elections. 

Related: Key Republican senator expects Democratic support for US crypto market structure bill

Window of opportunity for crypto clarity in US narrowing

The 2024 US elections gave Republicans control of the Executive Branch and both chambers of Congress, giving the Trump administration substantial leeway in passing pro-crypto regulatory policies.

However, the Republican Party secured the Congressional majority by a slim margin that has narrowed since 2024.

Republicans have a majority of seven seats in the House of Representatives and hold an eight-seat majority in the Senate heading into the 2026 midterm elections.