What do Ripple and others hope for in the new chapters of the crypto industry

The US crypto industry is facing a historic setback at the start of 2025 as new regulations threaten to tighten the landscape. As the legislative process accelerates in Congress, major players like Ripple, Coinbase, and others are hopeful for a new agreement to regulate the digital asset market structure. The “Digital Asset Market Structure and Investor Protection Act of 2025” (H.R. 3633) is considered a “lost layer” for industry supporters — the result of years of anticipated federal system clarification.

Clarification Act: A New Phase in Federal Regulation

While the previous GENIUS Act set basic rules for stablecoins, the new proposal aims to address multiple issues. Secondary trading, asset classification, intermediary licensing — all these key areas are being reconsidered within a new federal framework. However, the US remains fragmented with a patchwork of state licenses and local regulations. Major industry voices emphasize that this regulation is especially a barrier to innovation.

As Senate banking committee review dates approach, the complexity of new regulations increases. Alex Thorn, head of Galaxy Research, analyzed bipartisan meetings early 2025. According to him, Republicans favor swift passage of the law, while Democrats push for strict requirements on the DeFi (decentralized finance) sector.

Among Democrats’ main proposals is the “front-end sanctions” principle — requiring software developers to verify users at access points. Additionally, they seek expanded authority for the Treasury Department to oversee the DeFi sector. Projects claiming to be “decentralized” but operating in illegal spheres are also targeted under these stricter rules.

Stablecoin Yields: A New Battle Between Banks and Crypto

The most stark difference characterizing the new regulations is the issue of stablecoin yields. This has shifted from a purely political debate to a direct fight over bank profits.

American banks have firmly opposed stablecoin issuers earning interest from reserve assets (like short-term government securities). They argue this undermines traditional deposit systems. Meanwhile, the crypto sector claims this is protectionism.

Coinbase policy advisor Faryar Shirzad referenced previous stages, noting that stablecoin rewards were already addressed by the GENIUS Act, and reopening this could threaten the US dollar’s dominance. His analysis? The initial $3 trillion held by the Federal Reserve generates about $176 billion annually for US banks. Additionally, transaction fees bring in another $187 billion per year — averaging up to $1,440 per household. The total exceeds $360 billion annually.

Stablecoin yields could threaten this margin. Alexander Griv of Paradigm Venture said that bank lobbying groups consider interest-bearing stablecoins a “near-extinction event.” However, Griv notes that data does not support this position. December studies show no statistical correlation between USDC growth and bank deposits. People do not see stablecoins as a replacement for bank deposits — they serve other purposes.

Institutional Strategies: Ripple and Coinbase in the New Regulations

For major crypto companies like Ripple, the Clarification Act is not just a simple law — it’s a pathway to their long-anticipated prosperity. Ripple CEO Rees Merrick pointed to operational hurdles: “The US still lacks comprehensive regulation clarity for the broader crypto ecosystem. This halts the full development and innovation of companies operating in America.”

Ripple knows how to navigate this. The company is applying for a national banking license and seeking access from the Federal Reserve for RLUSD stablecoin operations. Recently, it acquired prime broker Hidden Road — a platform processing $3 trillion in transactions annually. This move indicates strategic positioning within a regulated environment.

Coinbase CEO Brian Armstrong commented on the law’s potential impact: “This legislation will clarify rules for crypto in the US, opening opportunities for all businesses, investor protection, and innovation.”

Global Competition: The US’s Falling Behind in New Regulations

Another dimension of the new regulations is increasing global competition. Europe’s MiCA (Markets in Crypto-Assets) regulation has already established a unified market standard. The European Securities and Markets Authority (ESMA) has provided clear compliance roadmaps for companies.

In Asia, hubs like Hong Kong and Singapore are developing specific rules aimed at attracting American companies. This “regulatory arbitrage” suggests the US’s time in leading the industry may be waning.

Senator Cynthia Lummis linked this regulatory battle to the January 15 deadline: “Long-standing uncertainty in rules has driven digital assets out of the US. This law will resolve market structure issues — with clear jurisdiction, strong protections, and US leadership.”

Despite criticism, efforts to push new regulations continue. Major players like Ripple and Coinbase are engaging in Senate negotiations — a new deal is required. If the Clarification Act passes, it could elevate the US crypto industry to a new level or accelerate foreign competition. The costs of these new regulations are not just legislative — they shape the future of the entire industry.