Regulation
2025 is the year of stablecoin regulation
Stablecoin regulations introduced across the European Union have raised questions about U.S. plans for fiat-pegged tokens.
Changing political conditions in the United States have spurred more cryptocurrency-friendly regulatory efforts. However, a bill approved by Congress and the White House remains pending.
“I fear that cryptocurrency regulation will be pushed to the back burner around 2025,” Anastasija Plotnikova, CEO and co-founder of Fideum, said in an interview with crypto.news.
Plotnikova predicted that the United States was on track to implement full regulation of stablecoins regardless of who wins the election, unless “half-baked legislation” is rushed through in the coming weeks.
According to Eneko Knörr, founder of Stabolut, the legislation will depend heavily on the outcome of the upcoming presidential elections and the resulting policy decisions. He believes that the US could “either embrace the crypto revolution or risk falling behind global competition.”
Furthermore, Knörr drew parallels between Donald Trumpthe pro-crypto position and Joe BidenStabolut’s position is more cautious. Regardless of who wins, Stabolut’s founder said the next U.S. president will likely reshape the future of the industry within U.S. borders and, perhaps, abroad as well.
Will MiCA’s stablecoin laws influence US regulation?
On June 30, provisions relating to stablecoins were enshrined in the European Union’s Crypto Asset Markets Regulation (Mica) took effect across the 27-member bloc. bagged the first license under this regime, paving the way for compliant crypto payment rails denominated in fiat currency in the region.
With Europe considered the first major bloc to implement a comprehensive framework for digital assets, the development has further shone a spotlight on the world’s largest capital market.
“The United States is in a much better position to draft the bill without the need to reach consensus among 27 member states, each with different interests and political orientations. We can expect fierce debates on the scope of the bill and the requirements imposed on stablecoin issuers,” Plotnikova said.
Plotnikova and Knörr agreed that MiCA’s policies on stablecoins were not ideal. The latter suggested that the United States take a different approach to balance rigorous oversight with innovation.
“However, history has shown us the opposite: a country that overregulates stifles innovation and diverts talent and investment to other countries.”
Stablecoin Regulations remain a major topic of discussion among lawmakers and private financial players. Members of Congress such as Maxine Waters, Patrick McHenry and French Hill have engaged in discussions to reach consensus on rules.
Former House Speaker Paul Ryan has suggested that regulating stablecoins could help alleviate growing concerns about U.S. debt by boosting demand for Treasuries. Plotnikova speculated that “the U.S. debt crisis has passed the point where private entities can simply solve it.” Debt levels have surpassed $34 trillion at the time of writing.
Conversely, Knörr noted that “increased purchases of Treasury bonds could be very beneficial for the United States,” even if it does not completely solve the debt problem.