The US GENIUS Act. Sounds impressive, right? Stablecoin regulation, consumer protection—all noble goals. But what if I told you this seemingly domestic piece of legislation could inadvertently stifle the vibrant, burgeoning crypto scene in Southeast Asia, effectively silencing a chorus of forgotten voices?

There’s a tendency in our thinking to believe that what is best for the US is best for all. That’s a perilous assumption, particularly where something as borderless and decentralized as cryptocurrency is concerned.

Think of it like this: imagine the US deciding the only acceptable internet speed is 10 gigabits per second. Great for Silicon Valley, sure. Yet in the tiny commune of Quang Phu Cầu in rural Vietnam, where internet is still a nebulous dream, let alone a luxury. Would that US-centric standard help them build their online businesses, connect with the world, and participate in the digital economy? Or would it shut them out entirely?

I had a great opportunity to talk to Anya, a contemporary visual artist from Bangkok who is currently leveraging the NFT landscape to finance her creative work. Prior to utilizing NFTs, she could not afford to survive, sustaining herself on hit-or-miss commissions and perpetual exploitation by galleries. Today, she is able to interact directly with collectors around the globe, allowing her to get a more equitable price for her work. Stablecoins are the backbone of her business, allowing her to settle cross-border payments instantly and at a fraction of the cost.

“Without stablecoins, I’d be at square one again,” she told me, her voice heavy with distress. The traditional bank transfer fees are outrageous, and it can take a month or more to be paid. Stablecoins changed everything for me.”

The GENIUS Act imposes onerous requirements for stablecoin issuers. This would make it incredibly difficult to operate a platform like the one Anya uses. Now, picture the compliance burden and expense required to comply with similar US regulations for a smaller, Southeast Asian-based platform. It might simply be too much.

This isn’t about being against regulation. It’s about understanding that there are unintended consequences to a Federal one-size-fits-all legislative approach. The UK's Financial Conduct Authority (FCA) must make it a priority to stay ahead of crypto developments. It would be a folly to simply replicate US legislation wholesale without question.

The greater danger? Driving innovation further underground or making it pick up stakes for jurisdictions with less stringent regulations. This regulatory arbitrage benefits no one. Legitimate businesses are forced out of the marketplace, and consumers are left with more dangerous products. At the same time, the US risks losing the benefits of a dynamic global crypto marketplace.

Now, think about the opportunity that Southeast Asia has to become a new center for blockchain innovation. The FTLT space is filled with super smart, creative developers and artists and entrepreneurs who are all working to create the future of Finance and Technology. They can soar if only they are provided a fair shot. It should not be weighted disproportionately in favor of legacy players in the US.

What's the answer? Regulation to meet the unique needs and unique contexts of these fast-paced emerging markets. Regulation that stimulates creativity and boosts individuals’ capacity to innovate—not curtail it.

Lord Chris Holmes is correct to highlight the need for stakeholders to be meaningfully involved in the process of developing regulations for crypto. That engagement must go beyond the usual suspects – the large corporations and known financial institutions. We need to hear from the Anyas of the world, the developers in Indonesia building decentralized applications, the entrepreneurs in the Philippines using blockchain to promote financial inclusion.

This US GENIUS Act is an important turning point. Or will it be used as a blueprint that curtails innovation across new markets? Or will it open the door for a more equitable and collaborative discussion on how to best regulate the global crypto space? The choice is ours. Let's ensure that the pursuit of consumer protection doesn't come at the expense of opportunity and progress for forgotten voices around the world. The alternative? We risk crushing the dreams and innovations blooming in Southeast Asia, all in the name of a US-centric vision of the future. Let's not allow that to happen.

A Call for Inclusive Global Regulation

What's the answer? Inclusive global regulation. Regulation that considers the diverse needs and realities of emerging markets. Regulation that fosters innovation and empowers individuals, rather than stifling it.

Lord Chris Holmes is right to emphasize stakeholder involvement in shaping crypto regulations. But that involvement needs to extend beyond the usual suspects – the big corporations and established financial institutions. We need to hear from the Anyas of the world, the developers in Indonesia building decentralized applications, the entrepreneurs in the Philippines using blockchain to promote financial inclusion.

  • Support Southeast Asian artists and developers: Explore platforms that showcase their work and contribute to their projects.
  • Advocate for inclusive crypto policies: Contact your representatives and urge them to consider the global impact of US regulations.
  • Educate yourself on the potential benefits of blockchain technology: Understand how it can empower individuals and communities in emerging markets.

The US GENIUS Act represents a crucial juncture. Will it become a blueprint for stifling innovation in emerging markets, or will it spark a conversation about a more equitable and collaborative approach to global crypto regulation? The choice is ours. Let's ensure that the pursuit of consumer protection doesn't come at the expense of opportunity and progress for forgotten voices around the world. The alternative? We risk crushing the dreams and innovations blooming in Southeast Asia, all in the name of a US-centric vision of the future. Let's not allow that to happen.