Erder emphasized that tax concerns aren’t the main issue, with US lawmakers focusing on tailored regulation for sectors like securities laws.
According to legal experts and industry executives, U.S. cryptocurrency regulations require additional clarification regarding stablecoins and banking relationships before lawmakers can prioritize tax reform.
According to Mattan Erder, general counsel at layer-3 decentralized blockchain network Orbs, tax is not necessarily the primary concern when it comes to enhancing US crypto regulation.
Expert Suggests US Stablecoin Regulation
Erder said that US legislators prioritize a “tailored regulatory approach” for sectors such as securities laws and the removal of “obstacles in banking,” which offers “more upside” for the industry.
He stated, “The new Trump administration is evidently fully committed to crypto and is embarking on initiatives that were unimaginable a few years ago, including during his first term.”
“It is probable that crypto regulation will be able to achieve a more comprehensive and rational approach to regulation in all domains, including tax.”
Nevertheless, Erder acknowledged that the extent of President Donald Trump’s ability to achieve his objectives through executive orders and regulatory agency action is constrained. He stated, “At some point, the laws themselves will require modification, and Congress will be required to accomplish this.”
The executive order issued by President Trump on March 7, which instructed the government to establish a national Bitcoin reserve by utilizing crypto assets confiscated in criminal cases, was perceived as a sign of the increasing federal endorsement of digital assets.
Crypto firms may continue to encounter challenges with banking access until at least January 2026, despite the administration’s recent pro-crypto initiatives, according to industry experts.
During the Chainreaction daily X show, Caitlin Long, the founder and CEO of Custodia Bank, stated that it is premature to declare the end of debanking, as “Trump will not have the ability to appoint a new Fed governor until January.”
The industry’s outrage regarding purported debanking reached a climax in June 2024, when a lawsuit initiated by Coinbase led to the disclosure of letters that indicated US banking regulators requested that specific financial institutions “pause” their crypto banking activities.
According to David Pakman, managing partner of the crypto investment firm CoinFund, the implementation of a stablecoin regulatory framework could potentially motivate additional conventional financial institutions to implement blockchain-based payments.
Pakman stated during a live X show on March 27 that the stablecoin bill, among other potential legislation, will enable numerous conventional banks, financial services, and payment companies to transition to crypto rails.
The comments are made as the industry anticipates advancements in US stablecoin legislation, which could occur within the next two months, according to Bo Hines, the executive director of the president’s Council of Advisers on Digital Assets.
The GENIUS Act, an acronym for Guiding and Establishing National Innovation for US Stablecoins, would establish collateralization guidelines for stablecoin issuers and mandate full compliance with anti-money laundering laws.
