Stablecoins regulations introduced across the European Union have raised questions about US plans for fiat-pegged tokens.
The changing political climate in the US has encouraged more crypto-friendly regulatory efforts. However, the bill approved by Congress and the White House remains a work in progress.
“I'm afraid that crypto regulations will be reduced in the 2025 agenda,” Fideum CEO and founder Anastasija Plotnikova told crypto.news in an interview.
Plotnikova predicted that the US is on its way to comprehensive stablecoin regulations regardless of who wins the election unless “half-baked regulations” are rushed through in the coming weeks.
Stabolut founder Eneko Knörr thinks that the law will largely depend on the outcome of the upcoming presidential election and subsequent policy decisions. According to Knörr, the US “can either embrace the crypto revolution or risk falling behind the global competition.”
In addition, Knörr drew parallels between Donald Trump's pro-crypto stance and Joe Biden's more conservative position. Regardless of who is elected, Stabolut's founder said the next US President will likely reshape the industry's future within America's borders and, perhaps, even overseas.
Will MiCA's stablecoin regulations affect US regulations?
On June 30, the provisions of the European Union marketed stablecoin Crypto Assets Regulation (MiCA) went into effect across the 27-member bloc. The circle filed the first license under this regime, paving the way for crypto payments compatible with fiat-denominated rails in the region.
Although Europe is considered the first major group to implement a comprehensive framework for digital assets, the development has exposed the largest financial market in the world.
“The US is in the best position to pass this bill without the need to reach consensus among the 27 Member States, each with different interests and political alignments. We can expect intense debates about the scope of this bill and the needs of those issuing stablecoins,” said Plotnikova.
Plotnikova and Knörr agreed that MiCA's stablecoin policies are wrong. The latter suggested that the US use a different approach to balancing strong surveillance and innovation.
“However, history has shown us otherwise—a country that over-regulates stifles innovation and drives talent and investment elsewhere.”
Stablecoin regulations remain a major topic of discussion among lawmakers and independent financial stakeholders alike. Members of Congress such as Maxine Waters, Patrick McHenry, and French Hill participated in negotiations to reach consensus on the legislation.
Former Speaker of the House Paul Ryan has suggested that passing stablecoin laws could provide a way to escape the growing US debt crisis by increasing the demand for Treasury bonds. Plotnikova concluded that “the US debt crisis has passed the point where the private sector can simply solve it.” Debt levels are over $34 trillion as of writing.
On the contrary, Knörr noted that “increased purchases of T-Bills would be of great benefit to the US”, even if it does not completely solve the debt issue.
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