All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.
The United States launched the digital asset revolution as a pioneer of financial innovation—but the momentum is no longer ours. Unless decisive steps are taken, America risks ceding its leadership in the global race for the future of finance.
Blockchain represents more than just another wave of financial innovation—it marks a fundamental redesign of market infrastructure. Among its most transformative applications are stablecoins: digital assets pegged to currencies like the US dollar that enable near-instant settlement. By removing friction, counterparty risk, and long-standing inefficiencies, stablecoins are reshaping global payments. They are already driving down remittance costs from double digits to mere cents and extending financial services to populations long excluded from traditional banking systems. The country that harnesses this technology at scale will shape the rules of international commerce and financial access for decades to come.
Other jurisdictions have recognized this moment. The European Union, Singapore, and Dubai are not simply allowing digital assets—they are actively building around them, offering regulatory clarity that attracts capital, talent, and innovation. Their message is clear: this is where the future of finance is taking root. By contrast, the U.S. has responded with regulatory fragmentation and institutional inertia—a precarious stance given the scale of the opportunity and the speed of global developments.
The data reveals how quickly this competitive realignment is taking shape. A report from Chainalysis shows that while the U.S. improved its position in retail digital asset adoption—rising from 8th in 2021 to 4th in 2023 and 2024—progress has stalled. Meanwhile, Europe and Asia are gaining market share, propelled by consistent regulatory frameworks that foster innovation while protecting users.
Measurable Market Divergence
Even amid record-setting activity, US digital asset markets struggle to hold their ground. Stablecoin transactions—an important barometer of user engagement and real-world utility—offer another clear signal. Over the past year, these transactions have increasingly migrated from U.S.-regulated platforms to international venues. The shift aligns with a widening regulatory gap: uncertainty at home and decisive clarity abroad.
The data tells a consistent story. Through 2022, U.S.-regulated exchanges were steadily gaining share of global stablecoin transaction volume. But in 2023 and 2024, that trend reversed, with international platforms pulling ahead. This isn’t solely a story of domestic decline—it reflects rapid growth in markets where stablecoins are being deployed at scale, driven by clear regulatory frameworks and innovation in other economies.
Source: Chainalysis
Time-series data on geographic distribution further substantiates these market shifts. In January 2020, North America accounted for 37% of global trackable stablecoin transfers, while Asia represented 61% and Europe 0%. That share peaked at 82% in May 2022,[i] with Europe at 7%. However, by December 2024, that figure dropped to 61%, and Europe’s share rose from 0% to 21% over the same period. Notably, the EU’s adoption of MiCA in May 2023 and stablecoin regulation implementation in June 2024 did not hinder activity. On the contrary, European stablecoin usage accelerated, potentially indicating a positive relationship between regulatory clarity and market growth.
Source: Artemis.xyz
Looking beyond user numbers to other economic activity, examination of stablecoin user engagement metrics as represented by active sending addresses reinforces this pattern of geographic redistribution.[ii] In April 2021, North America peaked at about 75%. While it dominated through Q2 of that year, its lead eroded rapidly through 2023 and 2024.[iii] As of early 2025, the EU clearly rivals North America, showing how legal certainty appears to have driven deeper engagement.[iv]
Source: Artemis.xyz
Transaction volume data for stablecoins provides additional confirmation of this competitive realignment.[v] In Q2 and Q3 2022, North America accounted for nearly 95% of all global transactions. As of March 2025, the EU is poised to surpass it.[vi] Far from suppressing activity—the MiCA framework appears to have expanded it, reinforcing the role of regulatory clarity in sustaining market vitality.
Source: Artemis.xyz
The Policy Imperative
Hard numbers demonstrate that the clock is ticking on America’s dominance of digital finance. Without decisive policy action, the United States risks ceding its position as the global leader. As current trends persist, other nations will establish the standards and protocols that define the future of digital assets, and the U.S. may become marginalized in a sector it initially pioneered.
Securing America’s competitive position requires immediate policy intervention to establish a regulatory framework that protects consumers, encourages responsible innovation, attracts investment, and ensures continued US leadership in the evolving global financial ecosystem. Drawing from models that have proven successful in jurisdictions like the EU, Singapore, and the UAE, this framework must reflect thoughtful principles for a digital asset taxonomy, clear jurisdictional lines between regulatory agencies, robust stablecoin regulation, and strong consumer protections.
Now is the time for action. The United States must implement a comprehensive regulatory framework for digital assets to secure its position at the forefront of global financial innovation.
Read more on capitalizing on the benefits and managing the risks of stablecoins in the Bretton Woods Committee’s recent publication.
Featured author:
Sarah Hammer, Executive Director, The Wharton School; Adjunct Professor, The University of Pennsylvania Carey Law School
[i] Peak percentage may have been due to the role of FTX.
[ii] The dataset represents unique sending addresses of stablecoins on Ethereum and Solana, with approximately 20% of the data being identifiable. Filtering criteria include: (1) selecting the largest transfer amount when a single transaction contains multiple stablecoin transfers, (2) excluding MEV and bot activity, and (3) removing intra-exchange transfers. This dataset captures approximately 5% of total adjusted active addresses.
[iii] The data set tags approximately 15-37% of global usage.
[iv] Data set consists of Ethereum and Solana. About 5% of the data is taggable.
[v] The dataset reflects active stablecoin addresses on Ethereum and Solana, with roughly 20% of the data being identifiable. The data is filtered as follows: (1) for transactions with multiple stablecoin transfers, only the largest transfer amount is considered, (2) MEV and bot activity are excluded, and (3) intra-exchange transfers are removed.
[vi] The dataset represents stablecoin transaction volume, with approximately 15% of the volume being identifiable. Filtering criteria include: (1) selecting the largest transfer amount when a single transaction includes multiple stablecoin transfers, (2) removing MEV and bot activity, and (3) excluding intra-exchange transfers.