US Stablecoin Regulatory Clarity Expected to Boost Coinbase and Legacy Finance Institutions
As US policymakers advance legislation to formalize stablecoin oversight, industry analysts project significant competitive advantages for compliant crypto-native firms like Coinbase alongside traditional financial entities. The proposed regulatory framework, anticipated to establish reserve requirements and issuance standards, could accelerate institutional adoption while mitigating systemic risks. Market participants suggest such legislation would particularly benefit exchanges with robust compliance infrastructure and traditional finance firms seeking to issue or custody dollar-pegged digital assets. This development marks a pivotal moment in the convergence of digital asset markets and regulated financial services.
Advantages for TradFi and crypto firms
Payment companies such as PayPal, which issued PYUSD in collaboration with Paxos, are positioned to leverage new regulatory clarity to expand stablecoin-enabled payment services across peer-to-peer transfers, e-commerce, and cross-border transactions.
Visa and Mastercard, which previously piloted stablecoin settlement projects, could further integrate regulated stablecoins into B2B payments, treasury management, and real-time settlement layers.
Traditional custodians, including BNY Mellon and State Street, as well as infrastructure providers like Nasdaq, are poised to benefit from the demand for custody and compliance services. BNY Mellon’s relationship with Circle, managing USDC reserves, is a model for this emerging service line.
Meanwhile, asset managers, like BlackRock and Charles Schwab, are also expected to benefit indirectly. As regulated stablecoin issuers park reserves in government money market funds, these firms may see increased inflows. BlackRock, which already manages USDC reserves, could expand its role in this area.
Global and DeFi implications
The report notes that international firms such as Payoneer, MUFG, and Nomura may also benefit from using compliant stablecoin infrastructure for cross-border US dollar-denominated transfers.
In contrast, decentralized stablecoins such as DAI, crvUSD, and GHO, which do not meet the Act’s definition of payment stablecoins, face a diminished role within US markets. These tokens will likely shift activity offshore, explore legal workarounds, or operate in a regulatory gray zone.
The report expects lending protocols like Aave and Compound to adapt by prioritizing compliant stablecoins in their US offerings. At the same time, DEXs like Uniswap and Curve will need to geofence or de-emphasize pools tied to non-compliant assets.
The STABLE Act also bans direct interest payments to stablecoin holders, restricting yield-bearing stablecoins like the Origin Dollar (OUSD) unless they register as securities with the SEC.
As a result, the future stablecoin market may favor tokenized money market funds and compliant DeFi lending products.
