Regulation
2025 is the year of stablecoin cryptocurrency regulation
Stablecoin regulations introduced in the European Union have raised questions about U.S. plans for tokens pegged to the U.S. dollar.
Changing political conditions in the United States have spurred increased regulatory efforts in favor of cryptocurrencies. However, a bill approved by Congress and the White House remains a work in progress.
“I fear that crypto regulation will be pushed back to the horizon towards 2025,” Anastasija Plotnikova, CEO and co-founder of Fideum, said in an interview with crypto.news.
Plotnikova predicted that the US is on track for full regulation of stablecoins regardless of who wins the election, unless “poorly crafted legislation” is rushed through in the coming weeks.
Stabolut founder Eneko Knörr believes that the legislation will largely depend on the outcome of the upcoming presidential election and subsequent political decisions. According to Knörr, the United States could “either embrace the cryptocurrency revolution or risk falling behind global competition.”
Furthermore, Knörr drew parallels between Donald Trumpthe pro-crypto position and Joe Bidenmore cautious stance. Regardless of who is elected, Stabolut’s founder said the next U.S. president will likely reshape the industry’s future within America’s borders and, perhaps, offshore.
Will MiCA’s Stablecoin Laws Affect US Regulation?
On June 30, provisions on stablecoins were enshrined in the European Union’s Cryptocurrency Markets Regulation (Not) has come into force across the 27-member bloc. Circle stuffed the first license under this regime, paving the way for compliant fiat-denominated cryptocurrency payment systems in the region.
Although Europe is considered the first major bloc to implement a comprehensive framework for digital assets, this development has put more attention 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 a consensus among 27 member states, each with different interests and political persuasions. We can expect heated debates on the scope of the bill and the requirements for stablecoin issuers,” Plotnikova said.
Plotnikova and Knörr agreed that MiCA’s stablecoin policies are not ideal. The latter proposed that the US take a different approach to balance strong oversight and innovation.
“However, history has shown us the opposite: a country that over-regulates stifles innovation and pushes talent and investment elsewhere.”
Stable currency regulations remain a major topic of discussion among lawmakers and private financial stakeholders. Members of Congress such as Maxine Waters, Patrick McHenry, and French Hill have initiated discussions to reach consensus on the rules.
Former House Speaker Paul Ryan has argued that the passage of stablecoin regulations could offer an escape from mounting U.S. debt concerns by increasing 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.
In contrast, Knörr noted that “increasing purchases of Treasury bonds could be very beneficial for the United States,” even if it did not completely solve the debt problem.