In a recent episode of Nasdaq TradeTalks – The Future of Digital Assets, Crypto Regulation and Policy, host Jill Malandrino welcomed Vice Chair of Ondo Finance and former Chairman of the House Financial Services Committee, Patrick McHenry, and Zach Nunn, U.S. Representative for Iowa’s 3rd Congressional District, for a timely conversation on digital assets, regulation, and the national security implications of financial innovation.
The discussion highlighted the urgency and bipartisan momentum behind establishing a comprehensive regulatory framework for crypto and blockchain technologies in the United States.
McHenry, who now serves as Vice Chair of Finance, opened by emphasizing the transformation underway in Washington. “Everything changed with the election,” he said, referring to the growing bipartisan interest in digital asset regulation.
“The leadership in Congress is there on a bipartisan basis. And the administration is really deeply engaged in digital assets and crypto policymaking.”
He pointed out that while regulators are now involved, the real long-term progress will come from codified legislation.
“The lasting impact is going to be in sound legislation making its way into law that will bring crypto back onshore,” he said. “Then we’re going to see the broad deployment of this technology across financial markets in a real and substantive way.”
Congressman Nunn, a cybersecurity expert and 20-year Air Force veteran, brought a national security perspective to the discussion, stressing the importance of building financial technology with cybersecurity embedded from the ground up.
“We also have to think cyber first or cyber by design as these kinds of technologies emerge,” he said. “We’ve got to make sure that blockchain not only is made in the U.S., but is the guardrail for the entire world when we start building this digital infrastructure.”
He warned about adversaries like China moving aggressively in blockchain development and emphasized that a cohesive government-private sector approach is necessary. “We put together a bill called the Clarity Act which really highlights we need to have a comprehensive government approach to this with our private sector partners.”
Nunn also praised recent legislative developments, including the passage of the Stablecoin Act and the Financial Technology Protection Act, which he authored. “Not only does this provide a smart roadmap ahead for what we can do here, it pairs what I’ve led and just passed unanimously… to ensure that American-backed stablecoins can’t be used for nefarious purposes.”
McHenry expanded on the real-world applications of blockchain technology, particularly tokenization. He explained, “There’s $64 trillion in global equities that can be brought on-chain.” Citing his involvement with blockchain firm Ondo, he noted, “This is the early case where we have a software enhancement… this is not a revolution when it comes to the world of real-world assets. It’s an evolution.”
He added that tokenization offers a significant societal benefit by reducing costs and improving access to investment opportunities. “The public gets access to more investment opportunities at a reduced cost. That’s a great societal benefit of tokenization.”
A key theme throughout the conversation was the need for clarity in U.S. law. “We need clarity of law to make it clear that in the United States, digital assets are here to stay,” McHenry said. “And we need regulators to move—as the SEC is now doing—actively providing clarity,” in contrast to the previous administration’s more restrictive approach.
He emphasized that American leadership in this space is critical for embedding values like human rights and freedom of speech into the global digital infrastructure. “American leadership in technology means we have a rules-based regime and speech rights embedded into the product and embedded into the technology.”
Despite the urgency, both lawmakers were optimistic that the U.S. can regain its leadership position. “We’ve got to go catch up to the rest of the world,” McHenry acknowledged, referencing the regulatory advancements already made by Europe, China, Japan, and Singapore.
Still, he believes that strong legislation could quickly close the gap. “The faster Congress can actually get a market structure bill done for digital assets… the better that impact’s going to be globally.”
Timing, according to McHenry, is critical—and fast approaching. “I think we’re talking weeks and months, not a year,” he said. “The president has a huge priority in getting a digital asset bill signed into law this summer.”
That legislation would likely include the FIT 21 Act, a market structure bill championed by Congressman French Hill. McHenry described the measure as a modern counterpart to the Securities Acts of 1933 and 1934: “It’s a good product, and they’re going to come up with sound policy that will benefit Americans for coming generations.”
Both McHenry and Nunn stressed that this is a matter of policy, not politics—a rare point of agreement across party lines. “This has got to be an all-hands-on-deck approach across government and our private sector and our allies,” said Nunn. “The American financial future rests on this.”
As digital assets redefine the boundaries of financial markets, the U.S. must act swiftly to provide the legal infrastructure necessary for innovation, security, and global competitiveness. The bipartisan commitment now forming in Congress suggests that clarity and progress may finally be within reach.
