Dhaka, Aug. 8 -- Having adopted one major piece of digital-currency legislation (the GENIUS Act) and with more pending (the CLARITY Act has passed the House of Representatives), the United States is poised to become a major hub for cryptocurrency-related activities, or even - taking President Donald Trump literally - the "crypto capital of the world." But those who support the new legislation should be careful what they wish for.

Unfortunately, the crypto industry has acquired so much political power - primarily through political donations - that the GENIUS Act and the CLARITY Act have been designed to prevent reasonable regulation. The result will most likely be a boom-bust cycle of epic proportions.

Historically, US financial markets'...