2025 is the year of stablecoin regulation

The European Union’s stablecoin regulations have raised questions about the U.S.’s plans for fiat-linked tokens.

Changing political conditions in the US have spurred more crypto-friendly regulatory action. However, a bill approved by Congress and the White House remains an ongoing endeavor.

“I am afraid that cryptocurrency regulation will be sidelined at the end of 2025,” Anastasija Plotnikova, CEO and co-founder of Fideum, told crypto.news.

Plotnikova predicted that the United States is on track to introduce comprehensive stablecoin regulation regardless of who wins the election, unless “half-baked legislation” is rushed through in the coming weeks.

Stabolut founder Eneko Knörr believes that the legislation will largely depend on the outcome of the upcoming presidential election and subsequent political decisions. According to Knörr, the US can “either embrace the crypto revolution or risk falling behind the global competition.”

Knörr also saw parallels between Donald Trump’s pro-crypto stance and Joe Biden’s more cautious stance. Regardless of who is elected, the Stabolut founder said the next US president will likely change the future of the industry within America’s borders, and perhaps beyond.

Will MiCA stablecoin regulations impact US regulation?

On June 30, the stablecoin regulations in the European Union’s Markets in Crypto Assets Regulation (MiCA) came into effect for the 27-member bloc. Circle won the first license under the system, paving the way for legal fiat-denominated crypto payment rails in the region.

While Europe is considered the first major bloc to implement a comprehensive framework for digital assets, the event shed even more light on the world’s largest capital market.

“The United States is in a much better position to draft the bill without having to reach a consensus among 27 member states, each with different interests and political alignments. We can expect fierce debates on the scope of the bill and the requirements for stablecoin issuers,” Plotnikova said.

Plotnikova and Knörr agreed that MiCA’s stablecoin policy is not ideal. The latter suggested that the US should take a different approach to balance strong oversight and innovation.

“But history has shown us something else — a country that overregulates, stifles innovation and directs talent and investment elsewhere.”

Stablecoin regulation remains a hot topic of discussion among lawmakers and private finance stakeholders alike, with members of Congress including Maxine Waters, Patrick McHenry, and French Hill leading talks to reach consensus on the rules.

Former House Speaker Paul Ryan has opined that passing stablecoin legislation could provide an escape from growing concerns about the US debt by increasing demand for Treasury bills. Plotnikova surmises that “the US debt crisis has passed the point where private entities can simply solve it.” The debt level has exceeded $34 trillion at the time of writing.

Knörr, in turn, noted that “increasing purchases of Treasury bills could prove very beneficial for the US,” even if it does not completely solve the debt problem.