Regulations or Taxes: What Should Come First?

As regulatory efforts accelerate, many experts argue that banking access and stablecoin regulations should be clarified before tax reforms. Orbs General Counsel Mattan Erder stresses that securities laws and access to the banking system should be a higher priority. According to Erder, regulatory and banking barriers must first be removed to support industry growth, with tax reforms following afterward.

Meanwhile, the Trump administration is taking proactive steps toward digital assets. A March 7 executive order granted the U.S. government the authority to use seized crypto assets to establish a national Bitcoin reserve. This marks a significant shift in federal policy and offers insights into how the U.S. aims to position digital assets within the global financial system.

Crypto Companies Struggle with Banking Access

Despite the Trump administration’s crypto-friendly stance, industry leaders anticipate ongoing banking challenges until at least 2026. Custodia Bank CEO Caitlin Long points out that significant changes are unlikely until Trump appoints a new Federal Reserve official.

Additionally, U.S. banking regulators have reportedly pressured some financial institutions to halt crypto banking services, raising serious concerns within the industry. A lawsuit led by Coinbase in June 2024 revealed that several U.S. banks had been directed by regulators to suspend crypto-related services, underscoring the banking access barriers that still hinder crypto startups.

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What Will Stablecoin Regulations Bring to the Crypto Sector?

Stablecoins are playing an increasingly crucial role in digital asset markets, making clear regulatory guidelines a top priority. David Pakman, managing partner at CoinFund, highlights that upcoming U.S. stablecoin regulations could ease the integration of blockchain-based payment systems into traditional finance. According to Pakman, banks and payment companies view stablecoin technology as a more transparent, cost-effective, and 24/7 accessible money transfer system.

In this context, the GENIUS Act, a proposed U.S. bill, is expected to set collateralization guidelines for stablecoin issuers and introduce strict anti-money laundering measures. If enacted, these regulations could provide a more robust legal framework for both the financial and crypto sectors.

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