Stablecoin rules prioritised over tax reform in US crypto policy

U.S. cryptocurrency regulations require clearer frameworks for stablecoins and banking relationships before addressing tax reforms, according to industry experts.

Mattan Erder, general counsel at blockchain network Orbs, emphasised that tax policy is secondary to resolving structural issues like securities laws and banking access.

“In my view, tax isn’t necessarily the priority for upgrading U.S. crypto regulation,” he stated, advocating for a “tailored regulatory approach” to unlock industry growth.

The Trump administration’s recent pro-crypto moves, including a March 7 executive order establishing a national Bitcoin reserve, signal federal support.

However, Erder cautioned that executive actions alone cannot fully address regulatory gaps, noting that “at some point, the laws themselves will need to change, and for that, [Trump] will need Congress.”

Debanking challenges persist despite political shifts.

Caitlin Long, CEO of Custodia Bank, warned that banking access issues may linger until at least January 2026, as Trump’s ability to appoint new Federal Reserve governors remains limited.

Industry concerns peaked in June 2024 when Coinbase revealed regulators had pressured banks to “pause” crypto-related activities.

Stablecoin legislation could catalyse mainstream adoption.

“Some of the potentially soon-to-pass legislation… will unlock many traditional banks, financial services, and payment companies onto crypto rails,” said David Pakman, managing partner at CoinFund, highlighting the potential of blockchain-based payments for traditional finance.

The pending GENIUS Act, which may advance within two months, proposes collateralisation guidelines and AML compliance for stablecoin issuers.

While tax reform remains contentious, experts agree that foundational regulatory clarity is critical.

As Bo Hines, executive director of the president’s Council of Advisers on Digital Assets, noted, stablecoin legislation could arrive as early as May 2025, offering a pathway for institutional participation in crypto markets.