What the U.S. Can Learn From Global Crypto Hubs
Ryze Roundup
The U.S. Opportunity in the Global Regulatory Landscape
Today, the White House will host its first-ever Crypto Summit, marking an important moment for U.S. policymakers as they reconsider the country’s approach to digital assets.
The U.S. regulatory landscape is beginning to shift, with recent signs of progress, including the SEC dropping cases against crypto companies and a broader pivot toward a more constructive stance.
The new administration appears more open to fostering a pro-crypto environment, a significant departure from the previous approach that prioritized enforcement over regulatory clarity.
However, while the U.S. recalibrates its position, other jurisdictions have already taken concrete steps to establish structured regulatory frameworks.
For instance, the UAE has emerged as a leader in crypto regulation, offering a balance of institutional-grade oversight and business-friendly policies.
Abu Dhabi’s ADGM is advancing the tokenization of real-world assets, such as real estate, while the national Securities and Commodities Authority (SCA) provides a clear framework outside of Dubai’s VARA. These regulatory frameworks, combined with a 9% business tax rate, zero personal income tax, and formal recognition of stablecoins like USDC and EURC, have positioned the UAE as an attractive hub for digital asset firms.
In parallel, regions like Singapore, Japan, and the European Union have introduced regulatory structures that provide clarity and predictability. Singapore’s regulatory sandbox has encouraged controlled innovation, Japan has focused on investor security through a structured approach to security tokens, and the EU has taken steps toward regulatory cohesion with its MiCA framework.
These models offer tested pathways that the U.S. can study as it works to establish a more comprehensive federal strategy.
The U.S. remains the world’s largest financial market, and institutional adoption is accelerating. However, without a unified framework, businesses still face regulatory uncertainty, particularly as agencies like the SEC and CFTC continue to operate with overlapping and, at times, conflicting oversight.
The positive developments in the U.S. signal a clear shift from the previous administration’s approach, but given how far the industry has been set back, it will take time to rebuild trust, provide clarity, and position the U.S. as a leader in global crypto innovation.
Rather than viewing international regulatory advancements as a challenge, they should be seen as an opportunity. The frameworks established in the UAE, Singapore, and the EU do not compete with U.S. efforts but provide case studies that can inform a more effective regulatory strategy.
The next phase of digital asset growth will be driven by jurisdictions that prioritize both innovation and responsible oversight. If the U.S. can build upon its recent progress and establish a more cohesive regulatory approach, it has the potential to not only regain lost ground but also set the standard for the next evolution of the global crypto economy.
Key News and Events
Overview of Aave Proposals: AAVE Buyback and GHO Aave Savings Upgrade
Aave has put forward two notable governance proposals this week, focusing on updates to Aavenomics, income distribution, and enhancements to liquidity management and security. These proposals introduce new mechanisms, including the Umbrella system, secondary liquidity management, and the Aave Savings Rate (ASR).
Proposal 1: Aavenomics Upgrade and AAVE Buyback
The first proposal aims to revamp Aave’s tokenomics by introducing a structured AAVE buyback program and transitioning from the existing security module to the Umbrella system. The buyback mechanism would reduce AAVE’s circulating supply while redistributing excess protocol revenue to AAVE stakers via the “Merit” program.
Key Details:
A $1 million per week buyback plan for six months, totaling $24 million.
Future buyback adjustments based on protocol revenue and budget considerations.
The new Umbrella system is designed to improve cross-chain liquidity management and user protection.
Following the proposal’s announcement, AAVE surged 39.36% within 48 hours, reflecting strong market optimism about the potential impact of these structural changes.
Proposal 2: sGHO - A Low-Risk Savings Product
The second proposal introduces sGHO, a savings product designed around Aave’s stablecoin GHO. This would allow users to stake sGHO and earn interest, positioning it as a low-risk alternative within DeFi. The product integrates with Aave’s existing risk management framework and yield strategies, aiming to provide users with a secure and predictable return.
The White House's support for the repeal of the IRS's "DeFi Broker Reporting Rule" (S.J. Res. 3), which aimed to impose strict reporting requirements on DeFi users, suggests a potential shift towards a more favorable regulatory environment for the DeFi industry. Aave's proposals, which emphasize expanding market share, enhancing user safety, and refining risk management, align with this trend.