As Trump-backed changes thrust crypto into the limelight, experts in the field believe US legislation must first explain banking and stablecoins before concentrating on taxes.
Industry leaders and legal experts believe that before politicians prioritize tax reform, U.S. cryptocurrency legislation need to be clarified regarding stablecoins and banking connections.
The general counsel for the layer-3 decentralized blockchain network Orbs, Mattan Erder, said that he does not believe that taxation should be the primary focus of improving US crypto laws.
Erder told Cointelegraph that US politicians prioritize a “tailored regulatory approach” for sectors like as securities legislation and reducing “obstacles in banking” since there is “more upside” for the sector.
“It is evident that the new Trump administration is fully committed to cryptocurrency and is taking actions that were only possible to imagine just a few years ago, including during his first term,” he said. “It appears likely that crypto regulation will be able to have it all and get much more tax-related regulation that is clear and logical.”
However, Erder pointed out that President Donald Trump’s authority to act only via executive orders and regulatory agency action is limited. He said that he would need Congress in order to modify the laws themselves at some time.
Growing official backing for digital assets was signaled by Trump’s March 7 executive order, which instructed the government to use cryptocurrency assets confiscated in criminal cases to create a national Bitcoin reserve.
Related: Trump made cryptocurrency the “centerpiece” of US policy rather than a “oppressed industry.”
Crypto companies may still have trouble accessing banks until at least January 2026, according to industry analysts, despite the administration’s recent pro-crypto actions.
Caitlin Long, the founder and CEO of Custodia Bank, said on Cointelegraph’s Chainreaction daily X show that it is too soon to declare that debanking is over since “Trump won’t have the ability to appoint a new Fed governor until January.”
The Crisis of Crypto Debanking: #CHAINREACTION This link: https://t.co/nD4qkkzKnB
The Cointelegraph (@Cointelegraph) page March 21, 2025
When a lawsuit led by Coinbase in June 2024 produced emails revealing that US banking authorities requested that certain financial institutions “pause” their crypto banking operations, industry fury over the purported debanking reached a peak.
Related: The desire for US stablecoin dominance may help Bitcoin
A stablecoin regulatory framework may persuade more conventional financial institutions to embrace blockchain-based payments, according to David Pakman, managing partner of cryptocurrency investment company CoinFund.
Pakman said on Cointelegraph’s Chainreaction live X show on March 27 that “many of the traditional banks, financial services, and payment companies will be unlocked onto crypto rails by some of the potentially soon-to-pass legislation in the US, like the stablecoin bill.”
“When we speak with them, we hear this firsthand; they want to use crypto rails as a less expensive, transparent, round-the-clock, and middleman-free network for money transfers.”
Bo Hines, executive director of the president’s Council of Advisers on Digital Assets, said the remarks come as the sector awaits developments on US stablecoin legislation, which might be finalized within the next two months.
Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, would set collateralization standards for stablecoin issuers and mandate strict adherence to anti-money laundering regulations.
Magazine: Important issues remain unanswered by the SEC’s U-turn on crypto
