Warren Davidson warns that the changing cryptocurrency policies are freezing the US market

U.S. Congressman Warren Davidson believes that recent policy changes in Washington are dampening the momentum of the cryptocurrency market, as regulatory decisions are pushing the industry toward an account-based financial model, accompanied by increased oversight and less freedom for users. In a post on X, he explained that this is why the crypto market in the U.S. has become sluggish, even though global adoption continues to rise.

He argues that the slowdown stems from crypto losing its core role of eliminating financial intermediaries in the U.S. As digital assets increasingly resemble traditional banking systems, they no longer have a competitive advantage, causing capital flows and innovation to move overseas. Davidson also emphasized that legal uncertainty, slow legislative processes, and strict enforcement measures have discouraged developers, especially in the fields of self-custody and privacy.

He criticized the GENIUS Act for favoring banks and warned that this framework could quietly build infrastructure similar to CBDCs. While acknowledging benefits such as increased demand for U.S. bonds, he believes the cost is a decline in financial autonomy and the core values that Bitcoin pursues.