Finish the job on digital asset market structure
Analysis
Price Impact
MedThe article highlights the critical need for regulatory clarity in the u.s. digital asset market, particularly concerning stablecoins and yield mechanisms. while not an immediate regulatory change, the persistent call from a respected figure like j. christopher giancarlo puts pressure on legislators, indicating a significant unresolved issue that, once addressed, would have a substantial positive impact on market structure and adoption.
Trustworthiness
HighJ. christopher giancarlo, former chairman of the cftc, is a highly credible and influential voice in financial regulation. his insights and advocacy are based on deep institutional knowledge and directly address policy-making.
Price Direction
Neutral to bullishContinued regulatory uncertainty acts as a drag on institutional adoption and innovation. a resolution, as advocated, that provides clear 'rules of the road' for stablecoins and digital assets, especially enabling regulated banks to participate, would be a strong bullish catalyst by de-risking the space for traditional finance and fostering greater capital inflow and integration.
Time Effect
LongLegislative processes in the u.s. are inherently slow, often taking many months or even years to debate, draft, and pass comprehensive market structure bills. the full impact of such changes on market dynamics and adoption would unfold over an extended period.
Original Article:
Article Content:
Opinion Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Finish the job on digital asset market structure Legislators must choose whether America leads the next generation of finance or watches from the sidelines. By J Christopher Giancarlo | Edited by Betsy Farber Feb 19, 2026, 2:17 p.m. Make us preferred on Google U.S. Capitol building in Washington (Jesse Hamilton/CoinDesk) In Washington, the safest vote is often no vote at all, and the most convenient timeline is "next session." But when it comes to the future of banking, financial markets and financial services, inaction is unacceptable. The United States needs crypto regulatory clarity to compete and succeed in the digitally networked financial system of the 21st Century. The Senate is today at a crossroads on market structure legislation—policy designed to bring order to digital asset innovation, an increasingly important component of global finance. Failing to codify the "rules of the road" doesn't just stall crypto; it invites regulatory chaos that harms banks and consumers alike, saps economic dynamism and forces innovation to drift offshore. Congress must choose whether America leads the next generation of finance or watches from the sidelines. STORY CONTINUES BELOW Don't miss another story. Subscribe to the CoinDesk Headlines Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . The current stalemate centers on a perceived conflict between banks and crypto platforms regarding interest yield and rewards on stablecoins—an issue already addressed by the GENIUS Act , signed into law by President Trump last year. The law permits crypto companies to offer rewards and incentives to customers for holding and using stablecoins made available by separate providers. Banks counter that such reward structures closely resemble traditional bank savings and checking products and, if left unchecked, could shift customer balances away from insured deposits without the same prudential requirements. Framed this way, the disagreement carries more weight than it should. Yield and rewards are questions of design within a payments framework, not questions of systemic safety or financial stability. Treating them as existential risks has delayed an otherwise straightforward resolution, stalling progress on crucial market structure issues. If one looks past talking points, a workable compromise is already available. Congress can explicitly enable federally regulated banks—including community banks—to offer yield on payment stablecoins. Banks gain a clear, federally sanctioned revenue and customer-acquisition opportunity in the stablecoin market. They obtain a straightforward way to secure customers and funds, especially important for community banks seeking to remain competitive in a world of mega-banks and scaled payment platforms. Crypto platforms, meanwhile, retain the incentive structures their customers expect and that are available under existing law. Congress gets to move market structure legislation forward and create a bill that can pass. And, most importantly, the American consumer benefits from increased competition and the ability to share in the yield potential of their own money. Framing crypto as an existential threat to the community bank is a rhetorical tactic, not an economic reality. A recent empirical analysis finds no statistically meaningful relationship between stablecoin adoption and deposit outflows, suggesting stablecoins function primarily as transactional instruments rather than savings substitutes. In fact, properly regulated stablecoins may provide local and community banks with a pathway to modernize their payment offerings and reach new customers. The rewards-yield question is a design issue that can be addressed without upending progress already made. A workable compromise exists that addresses banks' economic interests, protects crypto innovation and respects the settled law of the GENIUS Act. Advancing on that basis keeps the broader market structure package intact and provides the legal clarity that the American economy deserves. The Senate has the tools to resolve this impasse and to follow the strong leadership displayed by the White House. Failing to do so would be a choice, not an inevitability. Clarity Act Market Structure Legislation Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates . 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