The following is a guest post and an opinion of Vugar Usi Zade, Chief Operating Officer (COO) at Bitget.
The legal tide in the United States turns in a way that could again define the trajectory of the global crypto market. Under the current administration, regulators have given a hinge to a harsh approach of one that emphasizes clarity and growth.
The Securities and Exchange Commission (SEC) reconsider a proposed rule that would impose stricter custody requirements on investment advisers who keep cryptocurrencies and other assets. The agency decides to change or get rid of the rule entered under the previous administration, and this shift to more nuanced supervision is carefully welcomed by the industry.
Stablecoin legislation: a turning point for Dominance of Dollars?
The US is finally taking steps in the direction of regulating Stablecoins-Misschien the Spil of Cryptos’s real utility. But the question now is: are these steps too late to lead the global race? While other regions such as Asia and Europe have taken the initiative to make Stablecoin frameworks and attract innovation, the US has looked from the sidelines so far.
The Genius Act, a double regulating framework, with the aim of standardizing American dollar-pegged stablecoins, represents Washington’s attempt to catch up. Now that the Senate Bank Committee promotes it in the direction of a complete vote of the Senate, formal federal supervision can ultimately be within reach.
Stablecoins regulate trillions in annual transactions and serve as an important link between crypto and fiat. Clear, enforceable rules of the US could transform these instruments into trusted vehicles for global trade. Bo Hines, chairman of a federal working group for digital assets, recently noted that the Stablecoin legislation could unlock economic potential and further strengthen the dominance of the dollar in global finances.
According to the Genius ACT, Stablecoin-Emenna would be obliged to keep full 1: 1 reserves in safe, liquid assets such as T-Bills or insured deposits. This gives Stablecoins the type of institutional support that banks, companies and international regulators reassure. It is more than just a compliance box-this could bring the US regulated stablecoins into regular financial pipelines: payroll, transfers, settlements and even interactions in the central bank.
Why is this important worldwide? Because American financial policy is still seting the tone. If the US offers a credible path for regulated stablecoin growth, other areas of law will probably reflect or connect. Conversely, a lack of clarity risks to push innovation into regulatory gray zones, weakening supervision and fragmenting liquidity.
And now, with a second Trump administration-a presidency that previously has taken a more business benefit in financial innovation-speculating industrial viewers about accelerated deregulation or a more open regulatory architecture. Can Trump 2.0 embrace crypto as part of a larger digital dollar strategy? Or even use stablecoins as a geopolitric tool to expand dollar influence?
The Genius Act can be the basis, but what comes – policy can, enforcement approach, executive messages – can determine whether the US is a leader in this era or just a fast follower. Doing this good is not just about domestic innovation. The point is to get a digital foot on the ground for the dollar in a world of multiple chains, Multi-Maluta.
Macro risks and crypto -market volatility
Crypto – -markets are increasingly correlating with traditional financial markets, sensitive to macro -economic shifts. Events such as inflation peaks, changes in interest rates and geopolitical tensions regularly activate synchronized reactions in crypto and shares. A recent example was the significant impact of US trade rates on the ratings of Crypto market.
This correlation underlines the maturation of crypto, but it also gives systemic risks. Central banks and supervisors have expressed concern that the rapid integration of crypto in regular financing could strengthen economic disruptions if they are not carefully managed. Effective strategies for risk reduction will be crucial.
Bridging blockchain and traditional finances
On a more optimistic note, the wall between crypto and tradfi eroding steadily. Behind the scenes, banks, payment companies and even central banks are investigating blockchain technology to modernize their services. The progress is double: improvements in the scalability of blockchain and the rise of compliance-ready solutions that meet the requirements of regulators. On the front of scalability, innovations such as Layer-2 networks and more efficient consensus mechanisms are considerably increasing the transaction supply and reducing costs.
At the same time, new tools are tackling the compliance and security requirements that are by no means negotiable in Tradefi. From advanced blockchain analyzes that can mark illegal transactions in real time to identity and KYC frameworks for activities on chains, the toolkit for complying with the regulatory standards is mature. Recently a large European bank started project DAMA 2, a Layer-2 network based on Ethereum that is specially designed for financial institutions, so that they can use the benefits of blockchain while retaining control and legal supervision.
Further proof of this convergence is seen in recent IPO preparations by large crypto companies such as Circle and Kraken. These efforts show a deeper link between digital assets and traditional capital markets – companies are looking for public lists to build up wider capital flows and to build up institutional credibility. It is a clear signal that crypto no longer works in a financial silo. Now it positions itself in the heart of the global deal and public finances.
Similarly, payment giants are increasingly integrating stablecoins and blockchain in their networks: visa reports that deal with billions to Stablecoin payments, and fintech companies such as Stripe have obtained crypto startups to accelerate this integration. Of course there will remain challenges. Legacy systems cannot be overhauled overnight and trust in code must be earned over time. The likely endgame is a hybrid model: traditional financing expanded by blockchain in areas such as cross-border payments, assets-tokenization and settlement, all of which work under the vigilant eye of regulators and risk managers.
Exchanges such as pillars of institutional adoption
As regulations and technology coordinate to make crypto more accessible, exchanges will play a major role in steering the industry in the next phase of maturity. Crypto exchanges are provided with retail lovers and act as the first point of contact for many newcomers, but they also evolve to meet the strict requirements of institutional investors.
Worldwide regulatory involvement is another pillar of readiness. It opens doors to serve customers legally and reassures institutions that the exchange they trust with their assets is supervised by authorities. A combination of strong regulations and improved security measures could cause greater consumer confidence in digital assets.
When a pension fund or a multinational bank sees that a crypto-fair bank quality compliance, deep liquidity and emergency safety, the calculus changes from “too risky” to “viable investments”. Every new rule clarifies, every implemented security upgrade and every completed audit puts stones on the road that leads traditional capital to cryptomarkets.
From my viewpoint, the crypto sector in 2025 is more open and prepared than ever before. If we are mainly committed to truth, transparency and user protection, we can navigate through the challenges that lie in front of us and a more mature era of crypto – one in which growth and stability go hand in hand and where the line between traditional and digital financing continues to fade for all participants.
