The digital asset industry stands at a critical, hopeful juncture.
After years of fragmented approaches to regulation and legislation, we have reached a moment where clarity is both urgent and achievable. The consensus-driven market structure principles of the Blockchain Association offer a framework for the path forward. These principles reflect the industry’s maturation and the focus needed to enact meaningful legislation.
The principles address twelve key areas, recognizing that consumer protection and innovation are complementary priorities. They advocate for standardized disclosures and robust safeguards while allowing businesses to innovate without undue burden. This balanced approach is also seen in custody, emphasizing individuals’ right to self-custody while establishing frameworks for institutional custody solutions.
A crucial element of our framework distinguishes financial activities from various applications of blockchain technology. Smart regulation must focus on real financial risks while permitting innovation in non-financial uses. This applies to non-custodial software and smart contracts, which should not face the same regulatory requirements as traditional intermediaries.
Addressing the industry’s pressing token classification challenge, we need clear frameworks to distinguish between securities, commodities, and other digital assets, essential for compliance and growth.
Our framework acknowledges the global scope of digital assets while enhancing U.S. competitiveness. We advocate for reducing friction in cross-border transactions, ensuring U.S. markets remain attractive for investment. This includes establishing a unified secondary trading market to boost liquidity and price discovery.
Developer protections are another crucial aspect of the Blockchain Association’s principles, ensuring open-source developers are not liable for misuse of their code, which is vital for ongoing innovation. We also emphasize the right to participate in staking, voting, and peer-to-peer transactions on permissionless networks.
This consensus on principles is significant as it signals to Congress and regulators that the industry is ready for sensible regulation. We are not seeking special treatment but instead clear rules that protect consumers and promote innovation.
However, this opportunity will not last. Market dynamics, election cycles, and global competition heighten the need for action. The industry has shown readiness to work constructively with policymakers, demonstrating our capability to find common ground on complex issues while committing to responsible innovation.
For Congressional allies and regulators, these principles illustrate that the industry is prepared for meaningful policy discussions. For industry participants, they represent a shared vision of responsible market structure, providing a crucial path forward for the future of digital assets in the U.S. The work of enacting smart regulations and legislation lies ahead. With alignment and growing policy sophistication, we have an unprecedented chance to get this right. We have a limited window to act—let’s not let this moment pass.
