Financial innovation in digital assets is rapidly transforming the American economy, promising a new era of financial opportunity and global competitiveness. To seize this moment, Washington must pursue smart, informed reforms that protect investors without stifling innovation. Congress should prioritize developing a clear, modern framework for digital assets once the federal government reopens, but it must do so carefully and with a real understanding of the technology it seeks to regulate.
Digital assets have the potential to empower millions of Americans and give individuals more control over how they save, invest, and build their futures. Already, more than one in six Americans participate in digital assets, and with clear, sensible legislation, more families and entrepreneurs in Louisiana and across the country could confidently access the benefits of this financial revolution.
But Congress faces a critical test in how it approaches crypto market structure legislation. It would be a mistake to pass new, heavy-handed rules that freeze innovation rather than foster it. It would be equally wrong to pass reforms that ignore the foundational safeguards already in place for traditional investments – protections that have long provided trust, transparency, and confidence in American markets.
Lawmakers must resist the temptation to rush. Legislating in a field that many still misunderstand risks embedding serious policy errors that are difficult to correct. Poorly written laws could handcuff legitimate innovators while doing little to deter bad actors. Without clear, enforceable rules that directly target fraud and manipulation, digital assets risk becoming a breeding ground for abuse. The best protection for investors is strong anti-fraud enforcement with real penalties for those who deceive customers or distort markets. Targeting fraud directly protects consumers while allowing innovation to thrive, rather than smothering new technology under layers of poorly designed rules.
History shows what happens when oversight fails. The 2008 mortgage crisis was fueled by regulatory changes that encouraged reckless lending by government-backed lenders and allowed rating agencies to rubber-stamp toxic securities. Yet few of those responsible were ever held to account. The collapse of FTX, by contrast, stemmed from deliberate fraud: customer deposits were secretly diverted to cover risky bets at its affiliate hedge fund, while executives misled investors, regulators, and the public about the company’s financial health. This was not a failure of investor protections but of enforcement. Fraud is already illegal under every financial regime, traditional or digital, and the solution is stronger enforcement, not more bureaucracy.
When public confidence is shaken, it is not Wall Street insiders who suffer most. It is families, retirees, and small businesses who have worked hard, played by the rules, and relied on the integrity of our markets to protect their futures. Hasty legislation that misunderstands the technology could push Americans away from digital assets, slow investment, and undermine the very innovation Congress claims to support.
The path forward is clear. Congress should pair technical understanding with strong anti-fraud enforcement. Reasonable safeguards are not an obstacle to innovation; they are its foundation. With the right market framework, America can unlock the full promise of digital assets, create good-paying jobs, and strengthen its leadership in the global economy.
The American people understand that progress does not come from cutting corners or from regulating what we do not yet understand. It is time for Congress to modernize our markets the right way.
