Industry experts urge the US to establish clear #stablecoin regulations before implementing crypto tax reforms to foster innovation and maintain global competitiveness.
As the United States positions itself at the forefront of the cryptocurrency revolution, industry leaders are emphasizing the need for comprehensive stablecoin regulations prior to enacting tax reforms. Mattan Erder, General Counsel at Orbs, asserts that addressing securities laws and banking obstacles should take precedence over tax considerations to unlock the full potential of the crypto sector.
The recent executive order by President #DonaldTrump on March 7, directing the establishment of a national #bitcoin reserve using seized crypto assets, underscores the administration's commitment to digital assets. Despite this, concerns about "debanking" persist. Caitlin Long, CEO of Custodia Bank, warns that crypto firms may continue to face banking access challenges until at least January 2026, highlighting the need for regulatory clarity to foster financial inclusion.
David Pakman, Managing Partner at CoinFund, believes that a well-defined stablecoin framework could encourage traditional financial institutions to adopt blockchain-based payment systems. He notes that impending legislation, such as the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), could integrate traditional finance with crypto innovations, promoting a more efficient financial ecosystem.
The GENIUS Act aims to establish collateralization guidelines for stablecoin issuers and ensure compliance with Anti-Money Laundering laws. Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, anticipates that such legislation could be enacted within the next two months, marking a significant step toward comprehensive #crypto regulation in the US.
In summary, US crypto leaders are advocating for the prioritization of stablecoin regulations to create a solid foundation for subsequent tax reforms. By addressing regulatory uncertainties and banking challenges, the US can foster innovation, attract investment, and maintain its leadership in the global digital economy.