The post Stablecoin regulation is evolving and builders to step in appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. Crypto isn’t a stranger to debate, and recent developments on the regulatory front have intensified the conversation, as governments accelerate efforts to regulate the digital asset economy. In the U.S., the bipartisan GENIUS Bill, which passed the Senate floor, will, upon full implementation, become the first comprehensive federal framework regulating stablecoins. The UK is drafting legislation to bring digital assets under the same rules as traditional finance, while Europe’s MiCA framework is now being rolled out. We know that regulation of digital assets is inevitable, but today’s issue isn’t about when—it’s about how and whether those building the technology will have a seat at the table. Without talking to the builders of tomorrow’s financial technology, regulation in this space will continue to run into roadblocks and be hampered by frameworks that fail to reflect how digital assets actually operate. Rethinking regulation for digital finance While digital assets offer a range of benefits, including lower transaction costs, global accessibility, and increased financial autonomy, they also introduce new risks that traditional regulatory frameworks are not equipped to address. Unlike traditional banks, which provide safeguards such as deposit insurance, most stablecoin legislation, including what is laid out in the GENIUS Bill, lacks equivalent consumer protections. Issues like loss of private keys for non-custodial wallets, use of smart contracts and DeFi pools in different jurisdictions, and irreversible transactions remain unresolved. Plus, the complexity of managing multiple blockchain networks and wallets still deters mass adoption, particularly among less tech-savvy users. These concerns highlight a broader issue: regulatory frameworks are often developed in isolation from the technologies they aim to govern. To build policies that are both effective and forward-looking, lawmakers must engage…

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Filed under: News - @ July 13, 2025 9:13 am