The New Playbook: How U.S. Policy Will Accelerate Global Crypto Adoption - TOKEN2049 Singapore 2025

All right, Singapore, ladies and gentlemen, welcome to an awesome conversation. I'm very excited about it. I'm Cody Carbone, CEO of the Digital Chamber. I'm here with someone who needs no introduction, my friend Bo Hines. Bo, we're in Singapore.

We couldn't be further from home in the US. and we're here to talk about how the US is leading crypto policy around the world. That has been a massive change. You are a huge part of that. Just before we get into the nuts and bolts of how we got here, how much pride do you take in that that the US is now leading in crypto regulation and policy?

Well, we take tremendous pride in that, but honestly, it's truly a testament to our president's leadership. U our AI and cryptos are David Sax's leadership and obviously Patrick Whit who's there now pushing everything forward still with market structure. But, you know, this was one instance in which the US wasn't leading, right? And most of the founders in the United States were basically victims of policym through prosecution for for decades on end. it was impossible to build, which was, you know, really painful because we had the deepest capital markets in the world.

We should be innovating. We should be ensuring that you can actually develop good products in the United States. And now with Genius being passed, uh, with an administration that's friendly to builders, innovators, and founders, we're finally in a place in which we can welcome home a lot of the folks that have gone offshore, um, and emulate models hopefully setting a standard uh, for the rest of the world in terms of how these uh, technical um, creations can actually be integrated into the traditional financial system. And so, you know, we look at how money moves and I liken it to technology. the ways in which we communicate have changed quite dramatically over the course of the last few decades.

Right? If you look in the ways in which we move money, it really hasn't. And so as we sat there and we were evaluating what to do, we said look, we have to change the payment rails in the US in order to provide a pathway for integrations with traditional financial institutions. And that's why when we were looking at genius and market structure, we said, look, obviously for US dollar hegemony, it was really important that we're injecting treasuries into foreign economies. So that's, you know, the government play.

But in terms of financial payment rails, this unlocks the door to 24/7 markets, tokenized public securities, on and off ramps that are instant, uh, and much more cost effective. And I think that's great for the US consumer, but it's also great for consumers world worldwide with global remittances. Um, it's a really exciting time.

So much has changed in less than a year. It's incredible. I go back to when I think we met in December of last year. New position. We never had a crypto policy group in the White House.

There's no crypto playbook. You mentioned we're under a regulation by enforcement regime. What was Take us back to that like the early days. Day one, you're going in there. Where did you want to start?

What was the tone? What was the, you know, was there curiosity in the White House? What was it like? Well, look, you know, the president made quite a few promises to the crypto ecosystem when he was on the campaign trail and he understood how important this technology was uh for the United States in terms of us leading the charge tech in technological development. So, you know, David and I on the transition team back really in November post the election started mapping out a plan in order to make the US the crypto capital of the world as the president had desired.

Um, and obviously we started with genius, but there's really there's two pieces of this. we have, you know, the dual regulatory system in the US with the CFTC and SEC having dual jurisdiction. Obviously, CFTC presiding over the commodities exchange um and the securities presiding at the at the SEC. So, we looked at this and said, look, if we want to update the archaic payment rails inside of our system, we need clear regulatory standards that set rules that everyone can abide by and create fair marketplace competition. That's always the expectation and standard in the US when it comes to our economy.

And so with that we obviously started working the Genius Act diligently. Um there was a lot of trepidation with larger banks as you can imagine. Um most of these larger institutions are slow movers. Um I I'll be I'll be kind. Uh I won't maybe you could kind of look at them as almost like dinosaurs right when it comes to technology.

They don't like going outside of their comfort zone. But I think that they started to realize really quickly that this could be very powerful technology for them to integrate and offer to their customers. And so we were able to get genius done u after numerous conversations with obviously the crypto lobby with the trade associations um and then the banking lobby as well just to make them feel comfortable with where we were going. But it was time to revolutionize the financial system in the US and globally as well. You know these products were out there.

There was a demand from customers that already existed. I mean you think about Tether has 500 million customers around the world. It's funny, you know, Paulo, our CEO of Tether International, was saying that most people were telling him that they were servicing a niche. And I said, you know, that's quite interesting that you frame it that way, considering that we have 500 million people um that are using the product. And you think about a niche of underbanked folks around the globe, that's onethird of the entire population on planet Earth.

That's a pretty large niche, right? And so our ability in the US to connect these new financial rails to emerging markets is a phenomenal thing for global trade. It's a phenomenal thing for consumers around the globe just in terms of money remittances and how they can actually transact. Um you think about folks being able to actually access these products through retail platforms offered by banks. So I won't pick any bank name but you could log into an app now in the US um access USAT you know our product and you could engage in a global remittance instantly that's super cost effective uh you're not waiting on lag times and 5 to 7day settlements for global transactions you know this will truly revolutionize the way in which business is done around the world and I think that's extremely exciting but that's what David and I's goal was we wanted to update the system we wanted to make sure that we could move into a world in which we have 24/7 markets trading on and off ramps that with instant settlement times in ways that you know a lot of people had dreamed of for quite some time and you think about the larger exchanges in the US it's also exciting for them right because there's going to be more capital inflow but obviously we'll have capital outflow and we're allowing folks around the globe to access the capital markets in a way that they haven't been able to do before and I think that's a very powerful thing

I love the dinosaur analogy because you could also apply that to the US government I've been in Washington for 15 years and things don't move as quickly as they have as it relates to crypto policy this year and a lot of that is because of your leadership. Were you surprised at how quickly and we'll get into some of the successes like Genius Act, but were you surprised at how quickly you were able to get some of these things across the finish line starting something completely new within the White House?

Well, look, I mean the president has a phenomenal team inside of the administration. I mean Paul Atkins is doing a fantastic job at the SEC. Um, you know, we'll see who the CFTC chair is going to be. That's going to be to be determined. But you just think about all the work that's been done at at Treasury with Secretary Besson, at Commerce, with Secretary Lutnik.

Every single one of these players in the admin is pro innovation. They're pro digital assets. They know that things need to change. They want to integrate these technologies. And so the president has built a team that can actually move at David would say tech speed in order to do this because instead of leading from the front, which the US has always done, we were really lagging behind.

And that's different for the United States. And so, you know, we understood the the the need for to move expeditiously and I think that we acted on that. But the president said it best at the first White House crypto summit. He said to most of the founders that were in there, he goes, "Look, last year at this time, you had a better chance of going to jail than sitting in the White House." And so, that's the environment that we were facing.

You know, there's a big knowledge gap that still exists around these products um from folks that you wouldn't expect. Obviously, the traditional institutions and the banking system, but the regulators, it's really tough. And I know you do this on a day-to-day basis. Um, so they're still learning how these products actually work, how they're integrated, and how consumers use them. With legislators, it's even harder,

you know, and so a lot of the legislators, many of which are former community bankers, etc., they just don't understand why the desire is so strong from consumers in order to have access to instant settlements. They know it exists, but then now they have to find a way to plug that into the system. So, I'd like to see longterm, obviously I'm I'm out of my government role now. I'd love to see the government set a standard in terms of what tech integration could look like, whether it's for putting information on chain, whether it's for tracking uh foreign aid on chain, whether it's I mean, just imagine if you're a taxpayer in the US, you pay your taxes, and then you can track every dollar to where it's going in terms of government spend.

Like, that's a world that I want to live in. It creates accountability and transparency. I think that's a great thing uh for everyone and I'd love to see the rest of the world, you know, follow suit in that.

Let's talk about some of the successes that you had at the White House and some of the successes that have positioned the US to be the global leader in crypto regulation. I give this man a ton of credit because he was able to get the Genius Act, our stable coin regulatory framework in the US passed within six months and he was able to translate that to those legislators that don't really understand the tech and now they do because of you. Let's talk about the Genius Act. Why is that so important? Why was that so critical to get done right out of the gate?

And then I want to talk about the White House crypto report that you led.

Well, look, the Genius Act being the first piece of the puzzle, right? In order to have a completely renovated and revolutionized economic state, we had to start by updating the payment rails that existed, many of which were archaic. So you talk about Swift and the settlement times that that takes even for US businesses that are transacting. In terms of institutional settlement, if you're settling up on a Friday afternoon, you're going to wait the entire weekend in order to receive funds. This isn't good for money flow.

It's not good for consumers and it's not good for business more generally. And so that's why we chose Genius first, right? it's let's update the system and then we can talk about market structure and rules of the road for exchanges post post genius and that's where we are now with clarity. Um, obviously it was a tremendous battle uh inside of the system. You know, it's just the belly of the beast in Washington, right?

In order to get anything done that's that's big, it takes a lot of conversation and healthy debate. And obviously Cody at the digital chamber, you know, played a tremendous role in that. We're super thankful for your support in those efforts. But, you know, I'm I'm very pleased with how things are progressing. Now, that's the first domino that's fallen.

And so, now we're on to clarity and market structure. we can actually have both pieces of the puzzle come together and I think at that point the US will be the powerhouse in this space. I think again they will reestablish themselves and become the crypto capital of the world just as David and the president had outlined uh at the beginning of this process. But they're certainly positioned there now with genius and we'll see how these banks start integrating these technologies. I mean I really do believe that you'll start seeing these products offered to retail customers inside of different apparatuses that currently exist.

uh tech integrations are very simple and so banks are starting to figure it out. You know, some of them I think were a little bit over their skis out over their skis when Genius first passed saying that, you know, they're going to launch their own stables and their own chains and um now they're coming to look at partners like us and USA just given the distribution channels that mean so much in the stable coin space and obviously uh this company has built quite the global enterprise and so we're really excited to have the clear regulatory standards. We're excited to be operating in the United States. We're excited to connect the corridors to the US capital markets to the rest of the world and um we're going to change the way that money moves forever.

Global audience here, do you think that the Genius Act and that regulatory framework that it is implementing becomes a model internationally?

I think it has to, right? If you want access to US capital markets, if you want access to tokenized public securities through US exchanges, you're going to have to have a seamless on and off ramp because that's where the world's moving. Um I look at like Mika right now. I I think that their laws now are archaic postgenius, right? And so they're going to have to start letting foreign issuers uh into those different places.

There's such a high demand for the US dollar. It's the best product that can be offered in the world. And so if you want access, you know, to the NASDAQ, you want access to the Dow, Nissi, whatever it is. Um I firmly believe that tokenization is going to occur rapidly over the course of the next 10 years. Secretary Bessant said that he thinks the global market cap of stable coins will go over a trillion dollars in the next year.

I think in the next 5 years it could be 3 to5 trillion. Tokenization will run parallel to stable coin adoption because if you look at stable coins right now, especially globally, they're used to offset volatility with domestic currencies. They're eventually going to become a value transfer mechanism. When people start using these products without realizing it that it's actually a stable coin product they're using for purchasing power, that's when the game's going to change dramatically. And so you'll start seeing institutional settlement occur.

It's obviously a great product offering for banks, but as soon as retail adoption starts to take place in the US, I think that that'll spread very rapidly and it'll change really everything. Let's talk about the White House crypto report. Another huge accomplishment coming from the White House under your leadership. You led this process. Another thing I've never seen in my time in DC is getting all of these agencies to create what I call a crypto regulatory bible.

Can you explain to the audience what it is, why it was so important for you to get out there? We know we were working on that simultaneously to the legislative priorities, right? And our goal was to create the most clear and robust standard that had ever been set uh from a government perspective. And how we did this is we set up an internal working group inside of the government which included the SEC, CFTC, Treasury, Commerce, all the banking regulators. And we would sit down with them on a weekly basis saying let's evaluate what the standard should be here.

Let's talk about what market structure actually needs to include. And that way we were able to provide a regulatory roadmap to not only the regulators who are attempting to update how they viewed this system more generally, but also the legislators as they began working um on meaningful legisl legislation that would last. Um and so you know obviously the report was I think some odd 180 pages uh

beast. I think that we addressed um most of the questions that were unanswered in the space and we gave more confidence in the innovators in the builders and the founders that had left the United States to be able to come back because they knew how they would be treated and I think that's something that um was really necessary for us to actually be active participants in the ecosystem because many folks were still very trepidacious about engaging um in the US because they weren't sure if one thing would be interpreted one way by a certain regulator. It's like the left hand doesn't always talk to the right especially in government. big bureaucratic beast um that thankfully the president's trimmed down quite dramatically. Um but look, I I think that that will set the standard for the rest of the world in terms of regulatory adoption.

I think you'll start to see people move very quickly uh to match the framework that we've set up and I think that's a healthy thing for all founders in this space. U it gives us an opportunity to work together and collaborate in ways that we never have before.

It's uh if you haven't seen it, go to crypto.gov. I always like to plug that because it's surreal for me just to say crypto.go. It is a monster of a report.

Amazing recommendations. You've talked about the other domino that needs to fall, market structure legislation. Can you explain to the audience what that is and why it is so critical that we get that legislation done imminently in the US?

Yeah. So, look, you know, obviously with Genius, it provides a pathway for institutional adoption of stable coin products. With market structure, it sets a clear standard for basically origination of securities to commodities. Right? Where does that where is that line drawn?

Who is the jurisdictional authority? Who do you report to? And having this dual regime in the US makes things a little bit complicated. So what a lot of our largest exchanges, a lot of our founders in the United States are looking for just clear rules of the road. Who do I report to?

Um what is my product considered and how it would be treated long term? But this is a very unique space in a sense that you can create a security that becomes a commodity. So like where where on that where on that scale where in that line is that point and that's the question that has to be answered. Um I think they're going to get there uh with clarity. I'm very confident uh and Patrick Wood who's now replaced me in the White House as the executive director of the crypto council.

He's working with the same folks that obviously helped build this comprehensive report. Um the legislators have now dipped their toe in the water with genius and obviously being able to get that done sets a clear pathway in order to get clarity done as well. But, you know, I'm optimistic it'll happen this year. Um, with the SEC obviously setting the the rules of the road with Genius, then Treasury working on the implementation of those rules as well. I think that they're excited just to get this done.

And um, you know, just seeing the motivation that they currently exist with the senators and other folks are engaged in this process. Uh, I'm optimistic that maybe we see something in I don't know, the next 60 days. Let's keep our fingers crossed.

I sure hope so. All right, let's pivot a little bit cuz we just have a few minutes left. So, you left the White House, you left the West Wing, new gig. Congrats. You're at USAT as CEO.

Why USAT? Why Tether? Why now?

Well, look, there's one thing that matters the most with stable coins and that's distribution. We have 500 million customers globally and they've never been connected to the US capital markets. They've never been connected to US financial institutions. The US consumer is now learning how to use these products in a way they haven't before. There's an appetite from large scale financial institutions to integrate these these products and this technology.

Tether's much more than a stablecoin company. We're a technology company. We've built the best tech in the space. We have the customers that already exist. Imagine how powerful it is to connect these emerging markets to the US.

Imagine being able to log into your native bank account, right? And just accessing USAT, being able to send an instant payment at basically zero cost to anyone in the world, any time of day, 7 days a week. It's a gamecher and obviously between institutional settlements as well. It'll make business more expeditious and that's one thing that we're working on over the course of the next couple of months is who our partners are going to be who we want to collaborate with. I firmly believe that USAT will end up becoming an institutional product in the US not only in the retail side um but with institutions and so it's a very exciting time for us.

Uh we look forward to to rolling out this product and we hope that everyone engages with it. We hope it's the off-ramp from the US markets globally as well. And then we'll have seamless interoperability between UST and USDT making it easy for the consumer and easy for institutions to engage with both products. So um really exciting time but I just want to say thank you to you guys. It's great to be in Singapore.

Uh it's an amazing country and look forward to meeting you all.

Ladies and gentlemen, that's all for us. The man responsible for making sure the US is the crypto capital world. He has put us on the world stage, Bo Hines. Thank you all very much.