Stablecoin Regulation Comes Before Tax Reform, Industry Experts Assert
As America navigates the evolving landscape of cryptocurrency, business leaders argue that policymakers must address loopholes in regulation around stablecoins and access to banking first, before shifting focus to tax reform.
Tax Reform Takes a Backseat to Regulation Clarity
Mattan Erder, general counsel for a blockchain network at Orbs, emphasized that tax reform is not the priority. He is in favor of a regulatory approach that responds to securities legislation and eases banking restrictions.
“The new Trump administration is clearly all in on crypto,” Erder said. “But legislation still has to change—and that takes Congress.”.
Trump’s most recent executive order to establish a national reserve of Bitcoins is a sign of increased federal support. But it will not be sufficient, according to experts.
Debanking an Issue Until 2026
Despite pro-crypto signals from the nation’s capital, debanking issues persist. Custodia Bank CEO Caitlin Long stated that substantial change may not be in the offing until Trump can nominate a new Federal Reserve governor in 2026.
The issue was put into focus by a 2024 lawsuit filed against Coinbase, which revealed regulators had warned banks against limiting crypto-related services—adding to calls for clearer banking policies.
Stablecoin Regulation Could Spur Financial Innovation
CoinFund’s David Pakman referenced upcoming stablecoin regulation as an opening for wider institutional adoption of blockchain technology. The GENIUS Act legislation, for instance, aims to establish guardrails for issuers while keeping AML in place.
Traditional banks are keen to use crypto rails,” Pakman said, “but they need legal certainty before they can do so.”
Under the White House Council of Advisers on Digital Assets, regulation of stablecoins may pass in the next two months and, in doing so, unlock new growth for the digital asset industry.
