US Crypto Framework Positions America as Global Leader
Bernstein says the new US crypto framework, defined by the GENIUS Act and the upcoming CLARITY Act, marks the most mature phase yet for America’s digital asset market. The GENIUS Act has boosted stablecoin regulation, driving US dollar–backed supply above $260 billion. The CLARITY Act will create a unified market structure by clearly dividing responsibilities between the SEC and CFTC. Bernstein analysts highlight SEC Chair Atkins’ Project Crypto as pivotal, reclassifying most tokens outside securities law and enabling tokenized securities under one regulatory umbrella. Improvements in on-chain trading and 24/7 settlement aim to cut costs and reduce political risk. Crypto ETFs now hold $160 billion, with institutions making up around a quarter of investors. Digital asset IPOs have raised $4 billion this year, and publicly traded crypto firms’ market cap jumped from $80 billion to $380 billion, led by COIN and HOOD’s S&P 500 inclusion. Bernstein projects a new, sustainable crypto cycle driven by regulation, institutional adoption, and deeper blockchain integration in capital markets.
Bullish
Bernstein’s endorsement of the US crypto framework signals reduced regulatory uncertainty and a clearer path for institutional adoption. Historically, major regulatory milestones—such as the approval of Bitcoin futures ETFs—have triggered bullish market cycles by unlocking new capital inflows. The GENIUS and CLARITY Acts, together with Project Crypto, provide a unified structure that can accelerate stablecoin growth and tokenized securities trading. In the short term, we may see increased ETF inflows and higher trading volumes as institutions adjust positions. Over the long term, streamlined on-chain settlement and clearer rules should foster broader blockchain integration in capital markets, boosting liquidity and market stability.