What do the US midterm elections mean for digital assets in Australia?
The US midterm elections have been run and won. But what does this mean for digital assets in Australia?
Digital asset experts Edward Zhang from CloudTechX, and Effie Dimitropoulos from AUDC, share their thoughts.
Edward Zhang, General Manager, Custody, Treasury and Capital Markets at CloudTechX, the trading platform of CloudTech Group, said, “While the US mid-term elections will reshape their political landscape, it’s important that does not derail the momentum the US has built around digital assets.
“The US has made significant progress towards providing the regulatory certainty that businesses, institutions and investors need. The GENIUS Act was an important step, establishing the first comprehensive federal framework for payment stablecoins, and that momentum now needs to continue.
“Digital asset policy should not become a partisan issue. The focus needs to remain on creating clear, workable rules that protect consumers while allowing responsible innovation to flourish in the US. That means supporting the implementation of the GENIUS Act and progressing key market structure legislation such as the CLARITY Act.
“If political gridlock slows progress, the US risks giving other financial centres an opportunity to move ahead, which is an opportunity Australia is increasingly well positioned to seize.
“In the past 12-months, Australia has increased its momentum in providing fit-for-purpose regulation to support the growth of digital assets, making us increasingly competitive on the global stage.”
In addition, Effie Dimitropoulos, Co-Founder and CEO of AUDC, stated, “The US midterm results may complicate President Trump’s broader digital asset agenda, but they are unlikely to reverse the progress already made.
“The passage of the GENIUS Act was a significant milestone for stablecoins, providing greater regulatory certainty and reinforcing the United States’ ambition to lead in digital finance.
“Stablecoins are increasingly becoming part of mainstream financial infrastructure, supporting cross-border payments, settlement and tokenised assets. This is being driven by real commercial demand, not simply political agendas.
“Australia has already established a regulatory pathway for stablecoin issuers through its existing financial services licensing regime. The focus now should be on building on that foundation through Treasury’s Payments System Modernisation reforms, ensuring the framework remains fit for purpose as adoption grows.
“The US has recognised the importance of stablecoins in strengthening the role of the US dollar in global financial markets. Australia should be thinking the same way.
“Regardless of the political direction in Washington, we have an opportunity to ensure the Australian dollar remains relevant as payments and financial markets move on-chain. We should focus on regulatory certainty, support Australian issuers, and position Australia as a leader in digital payments and settlement across the Asia-Pacific region.”
