Leaders in the cryptocurrency sector and legal experts are signaling that greater clarity is needed in U.S. regulations surrounding stablecoins and banking connections before any focus is shifted toward tax reform.
“I don’t believe tax reform should be at the top of the list for enhancing U.S. crypto regulation,” stated Mattan Erder, general counsel of a decentralized blockchain network.
In his view, U.S. lawmakers should prioritize a tailored regulatory framework that addresses securities laws and alleviates “barriers in banking,” noting this approach has “more promise” for the sector, Erder explained further.
“The new administration is clearly committed to the crypto space and is implementing initiatives that were once mere aspirations just a few years ago (even during its first term),” he added. “It appears that comprehensive and sensible regulation, including taxes, may indeed be forthcoming.”
Nevertheless, Erder pointed out the limitations of what the President can achieve solely through executive orders and actions from regulatory bodies. “Eventually, legislative changes will be necessary, and for this, he will require congressional support,” he remarked.
Shortly after the President’s directive on March 7, which aimed to create a national Bitcoin reserve from crypto assets confiscated in criminal investigations, it was interpreted as an indicator of increasing federal backing for digital assets.
Continued Banking Challenges
Amidst the recent favorable regulatory shifts, experts indicate that crypto companies might continue encountering banking access challenges until at least January 2026.
Caitlin Long, founder and CEO of a crypto bank, asserted during a live daily show that “it’s too early to declare an end to debanking,” emphasizing that “the President won’t be able to appoint a new Federal Reserve governor until January.”
Industry frustration over alleged debanking peaked following a June 2024 lawsuit involving a notable crypto exchange, which revealed communications indicating that U.S. banking regulators had advised select financial institutions to “pause” their crypto banking services.
Potential Growth from Stablecoin Regulation
David Pakman, managing partner at a cryptocurrency investment firm, expressed that establishing a regulatory framework for stablecoins could motivate more traditional financial institutions to embrace blockchain-based payment systems.
“Anticipated legislation in the U.S., such as the upcoming stablecoin bill, could pave the way for traditional banks, financial service providers, and payment processors to transition to crypto solutions,” Pakman commented during a recent live show.
“We gain insight directly from conversations with them; they’re interested in utilizing crypto channels as a more efficient, transparent, and always-on network for money transfers, without relying on intermediaries.”
As the industry looks forward to developments regarding U.S. stablecoin legislation, it may see action as soon as the next couple of months, according to insights shared by a high-ranking official from the President’s Advisory Council on Digital Assets.
The proposed GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins, aims to set collateralization standards for stablecoin issuers while ensuring full compliance with anti-money laundering regulations.