- US crypto regulation requires initial focus on stablecoins and banking relationships before tax reform, according to industry experts.
- Debanking concerns for crypto firms will likely persist until at least January 2026, despite the Trump administration’s pro-crypto stance.
- The proposed GENIUS Act for stablecoin regulation could enable traditional financial institutions to adopt blockchain-based payment systems.
Industry leaders are calling for US lawmakers to prioritize regulatory clarity on stablecoins and crypto banking relationships before addressing tax reform issues. The appeal comes as the cryptocurrency sector evaluates potential regulatory changes under President Trump’s administration, which has signaled strong support for digital assets through recent executive actions.
Mattan Erder, general counsel at Orbs, emphasized that tax regulation isn’t currently the most pressing priority. “In my view, tax isn’t necessarily the priority for upgrading US crypto regulation,” he told Cointelegraph, suggesting that a “tailored regulatory approach” for securities laws and removing “obstacles in banking” would deliver greater benefits to the industry.
Erder acknowledged the administration’s supportive stance toward cryptocurrency, noting that “The new Trump administration is clearly all in on crypto and is taking steps that we could have only dreamed about a few years ago.” However, he cautioned about the limitations of executive action, explaining that comprehensive reform would ultimately require congressional support.
President Trump’s March 7 executive order directing the establishment of a national Bitcoin reserve using crypto assets seized in criminal cases has been widely interpreted as a signal of growing federal support for the digital asset industry.
Despite these positive signals, banking access remains a significant concern for crypto companies. Caitlin Long, founder and CEO of Custodia Bank, cautioned during a Chainreaction discussion that “It’s premature to say that debanking is over,” pointing out that significant policy changes at regulatory agencies might not occur until early 2026.
The banking relationship issue gained prominence in June 2024 when a lawsuit led by Coinbase revealed communications showing US banking regulators had asked certain financial institutions to “pause” their crypto-related activities.
Industry experts believe stablecoin legislation could be transformative for the sector. David Pakman, managing partner at CoinFund, suggested during a Chainreaction live event that regulatory clarity on stablecoins would encourage traditional financial institutions to adopt blockchain technology.
“We hear this firsthand when we talk to them; they want to use crypto rails as a lower-cost, transparent, 24/7, and no middleman-dependent network for transferring money,” Pakman explained.
The industry is now awaiting progress on the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), which could advance within the next two months according to Bo Hines, executive director of the president’s Council of Advisers on Digital Assets. The proposed legislation would establish collateralization guidelines for stablecoin issuers while mandating full compliance with Anti-Money Laundering regulations.
These developments come as the cryptocurrency industry continues to seek regulatory clarity across multiple fronts, with stablecoin framework and banking relationships emerging as the most immediate concerns ahead of broader tax reform considerations.
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