Questioning the U.S. Centric Approach to Digital Asset Regulation and Its Implications for Global Innovation and Growth

Abstract

The global regulatory landscape for digital assets is diverging, with the U.S. adopting a unilateral approach that emphasizes regulatory primacy. This stance, marked by deregulatory measures and a focus on national interests, contrasts with the collaborative efforts of other jurisdictions, such as the EU's MiCA framework. This paper argues that the U.S. centric approach risks isolating American markets, hindering global interoperability, and undermining its monetary sovereignty. As other countries develop alternative digital currency systems, the U.S. strategy may lead to regulatory arbitrage, diminished network effects, and geopolitical tension. A shift towards global cooperation and the promotion of interoperability is essential for advancing innovation and maintaining stability in the evolving digital asset ecosystem.

Keywords: Digital Assets, Regulation, Currency, Innovation, Interoperability, Banking Policy, Global Banking, Central Bank

JEL Classification: E42, E58, F33, F42, G18, G20, O30