Abstract
The US regulatory overhaul of digital currencies in 2025 – with a targeted framework for stablecoins, digital asset classification, and rejection of Central Bank Digital Currencies – marks a turning point in international monetary policy. Drawing on Hayek’s theory of currency competition and incorporating recommendations from the Draghi report on the European Capital Markets Union, this analysis gives an overview of the several elements of the US Crypto legislation. It discusses the implications for financial markets in Germany and the EU.