Everyone saw it. The CLARITY Act vote failed. CT spent a night doomscrolling, the market moved, and everyone moved on
But the more useful question is what this means for businesses building in crypto?
🏛️ The bill got stuck on two issues: rules for public officials holding crypto assets, and yield on stablecoins
Banks have an obvious problem with yield-bearing stablecoins. They compete for deposits, and deposits are the foundation of the banking business. Banks are protecting a core source of funding
That does not mean banks have to be left out
🏦 There is already a working model. Reserves sit with a bank. The bank handles KYC, fiat on and off ramps, distribution and earns its share of the economics
⚖️ Stablecoin holders receive part of the yield. That is much closer to how the market will actually work than a full rejection of traditional financial infrastructure
The world does not need to move fully onchain for stablecoins to become a mainstream payment tool
🇺🇸 And the US is not the final chapter of this market. Crypto trading is still banned in mainland China
Major jurisdictions are still working out their long-term approach. The CLARITY Act failing matters, but it is part of a bigger issue. In two years US policy has shifted from regulation by enforcement to an openly pro-crypto SEC. When the rules depend this heavily on one administration, the next one can reverse course just as fast
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Senator Lummis says the next realistic window for a comprehensive bill may not come until 2030
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⏳ While the US waits, the UAE, Singapore, Hong Kong, the EU under MiCA, and Kazakhstan already have functioning frameworks. Companies can understand the rules, secure a license, build banking relationships, and plan beyond the next election cycle
For many crypto and fintech companies, the sensible play looks like this:
🌐 Build the operating core outside the US
▫️Get licensed where rules are already in force, not where they are still being debated. At the same time, design the product architecture to be compatible with the GENIUS Act, even if the US is not on the roadmap today
🤝🏼 Bring a bank in from day one
▫️Every durable stablecoin and payments model has a bank in it. And bank partnerships usually take longer than building the product itself. This business comes down to three things: banks, liquidity, and customers. Most other problems can be solved around them
📜 Governments should treat predictability as a product
▫️ Stable rules, clear requirements, and credible conflict-of-interest standards give a jurisdiction a real edge. That is where companies will go while Washington tells them to wait
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The US will eventually pass a major crypto bill. The winners will be the companies that arrive with licenses, banking infrastructure, liquidity, and a working product
If US regulation keeps stalling, the country will still try to extend its requirements through market access, banks, and counterparties-first to the EU, the UK and Canada, then much further
Maybe the US is no longer the default
💬 Genuinely curious which jurisdictions people are betting on now?