Industry insiders: Despite strong development momentum, stablecoins still face regulatory uncertainty

Odaily reported that industry insiders pointed out that while stablecoins are seeing strong growth momentum, they still face major obstacles that may limit their adoption. Regulatory uncertainty is looming. Nascent co-founder Dan Elitzer emphasized the risks that emerged during the Silicon Valley Bank collapse, which led to a minor depegging of Circle's USDC stablecoin. Elitzer stated that these risks will persist until a clear regulatory framework is established. Credibly Neutral general partner and Coinbase protocol expert said that reliance on traditional banking infrastructure still poses risks. He cited events like "Operation Chokepoint 2.0" and the collapse of crypto-focused banks like Silvergate as examples of stablecoins' dependence on traditional systems. However, he is optimistic that upcoming US legislation can mitigate these risks. Compliance requirements are intensifying. Galaxy Ventures general partner Will Nuelle pointed out that payment businesses, especially in the fiat on/off-ramp layer, must also excel in compliance to maintain banking relationships, which is both expensive and challenging. Fabric Ventures general partner Anil Hansjee stated that as this category faces increasing regulation, stablecoin issuers are facing significant hurdles. He emphasized these challenges, including technology, regulation, banking complexity, and the go-to-market strategy for scaling stablecoins. Hansjee said, "By running or collaborating with L1 or L2 blockchains optimized for processing and payments, it may be possible to achieve a self-banking experience, where these solutions effectively create a new end-to-end on-chain acceptance and settlement flow (bypassing traditional networks like Visa, Mastercard or banks) to enable merchants to receive faster payments at lower fees."