US Crypto Tax Reform Hinges on Stablecoin Clarity, Experts Claim

Before the United States tackles cryptocurrency tax reform, clearer regulations regarding stablecoins and banking relationships are essential, according to industry leaders and legal experts. This is not merely a matter of streamlining taxes but of addressing fundamental issues impacting the industry’s stability and growth.

\”Prioritizing tax reform before addressing the core regulatory issues surrounding stablecoins and banking is putting the cart before the horse,\” argues Mattan Erder, general counsel at Orbs, a layer-3 decentralized blockchain network. Erder emphasizes the need for a tailored approach, focusing on securities laws and removing banking obstacles – areas he believes offer greater immediate benefits for the industry.

\”The current administration’s pro-crypto stance is unprecedented,\” Erder continues. \”However, even with executive orders and regulatory agency actions, legislative changes are crucial for lasting impact. Congress’s involvement will be key in solidifying these advancements.\”

The administration’s March 7th executive order establishing a national Bitcoin reserve, utilizing crypto assets seized during criminal investigations, is seen as a testament to growing federal support for digital assets. This action, while significant, underscores the need for comprehensive regulatory frameworks to build upon this progress.

Related:Trump’s Executive Order on a Strategic Bitcoin Reserve

Debanking Concerns Persist

Despite the administration’s positive steps, crypto firms continue to face significant challenges accessing banking services. This issue, experts believe, won’t be fully resolved until at least January 2026.

\”It’s premature to declare the debanking crisis over,\” says Caitlin Long, founder and CEO of Custodia Bank. \”Key appointments within the Federal Reserve won’t occur until next year, leaving the issue unresolved for the foreseeable future.\”

The Crypto Debanking Crisis: #CHAINREACTION https://t.co/nD4qkkzKnB

— Cointelegraph (@Cointelegraph) March 21, 2025

The June 2024 Coinbase lawsuit, revealing regulatory pressure on banks to curtail crypto services, further emphasizes the urgency of comprehensive legislative reform.

Related: Senator Warren’s Hearing on Crypto Debanking

Stablecoin Legislation: A Catalyst for Growth

David Pakman, managing partner at CoinFund, believes a clear stablecoin regulatory framework could significantly encourage mainstream financial institutions to embrace blockchain-based payments. He stated in a recent Cointelegraph interview that the upcoming stablecoin bill will be a critical step in this direction.

\”Traditional financial institutions are eager to leverage the benefits of blockchain: lower costs, transparency, 24/7 availability, and reduced reliance on intermediaries.\”

The anticipated passage of the stablecoin bill within the next two months, according to Bo Hines, executive director of the president’s Council of Advisers on Digital Assets, signals a potential turning point for the industry. The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) aims to establish robust collateralization guidelines and ensure compliance with AML regulations.

Magazine: SEC’s Unclear Crypto Laws