Stablecoin regulations introduced across the European Union have raised questions about the US’s plans for fiat-pegged tokens.
Changing political circumstances in the United States have spurred more favorable regulatory efforts for cryptocurrencies. However, the bill passed by Congress and the White House remains an ongoing effort.
“I fear that cryptocurrency regulation will be pushed to the bottom of the agenda by 2025,” Fideum CEO and co-founder Anastasia Plotnikova said in an interview with crypto.news.
Plotnikova predicted that the US is on track to comprehensive regulation of stablecoins regardless of who wins the election unless “ill-conceived legislation” is rushed through in the coming weeks.
Stabolut founder Eneko Knorr believes that legislation will largely depend on the outcome of the upcoming presidential election and subsequent political decisions. According to Knorr, the United States could “embrace the crypto revolution or risk being left behind in the global competition.”
Additionally, Knorr drew parallels between Donald Trump’s pro-crypto stance and Joe Biden’s more cautious stance. Regardless of who is elected, the Stapolot founder said the next US president will likely reshape the future of the industry within America’s borders, and perhaps beyond.
Will MiCA Stablecoin Laws Impact US Regulations?
On June 30, the stablecoin provisions of the European Union’s Markets in Crypto-Assets Regulation (MiCA) came into effect across the 27-nation bloc. Circle has been granted the first license under the regulation, paving the way for fiat-compatible crypto payments in the region.
While Europe is the first major bloc to implement a comprehensive framework for digital assets, the development sheds more light on the world’s largest capital market.
“The US is in a much better position to draft the bill without having to reach consensus among 27 member states, each with different interests and political orientations,” Plotnikova said. “We can expect fierce debates over the scope of the bill and the requirements for stablecoin issuers.”
Plotnikova and Knorr agreed that MiCA’s policies on stablecoins are not ideal, with the latter suggesting that the US should take a different approach to balance strong oversight with innovation.
“But history has shown us otherwise – a country that overregulates stifles innovation and drives talent and investment elsewhere.”
Regulation of stablecoins remains a major topic of discussion among lawmakers and private sector financial stakeholders alike. Congress members Maxine Waters, Patrick McHenry, and French Hill have been engaged in talks to reach consensus on the rules.
Former House Speaker Paul Ryan has suggested that passing stablecoin regulations could provide a way out of the mounting U.S. debt concerns by boosting demand for Treasuries. “The U.S. debt crisis has passed the point where private entities can simply solve it,” Plotnikova predicted. Debt levels have topped $34 trillion as of this writing.
In contrast, Nour noted that “increasing the purchase of Treasury bonds could be very beneficial for the United States,” even if it does not completely solve the debt issue.