As 2026 approaches, cryptocurrency markets are facing renewed uncertainty following key legislative developments in the United States. Tensions escalated after Coinbase withdrew its support for a major piece of crypto legislation, prompting CEO Brian Armstrong to raise concerns about how proposed rules could limit stablecoin yields and weaken competition. Those concerns spilled onto the global stage during the World Economic Forum in Davos, Switzerland, where Armstrong publicly debated the chief of the Bank of France over the future of stablecoins, Bitcoin, and U.S. regulatory direction.
Armstrong argued that allowing stablecoin yields is essential to fostering innovation and competition, while the Bank of France’s leadership emphasized the risks such yields could pose to monetary sovereignty and financial stability. Despite their differences, both sides agreed on one point: innovation and regulation must work together if the sector is to mature responsibly.
That regulatory perspective was reinforced by Max Bernt, Global Head of Regulatory Affairs at Taxbit, who also participated in discussions at Davos. Bernt said the atmosphere at this year’s forum felt notably different, in large part due to the presence of President Donald Trump and the attention surrounding his comments. While topics like AI, longevity, and environmental sustainability featured prominently, Bernt noted that cryptocurrency drew heightened focus, especially following Trump’s remarks on digital assets.
As global policymakers grapple with crypto’s growth, the question of regulatory alignment has become increasingly pressing. Bernt observed that several jurisdictions are moving more decisively toward coordinated frameworks. In Europe, regulators have taken a proactive stance, while the U.S. has advanced the GENIUS Act and begun outlining clearer rules for stablecoins. Those efforts, Bernt said, are likely to influence how other countries approach regulation.
According to Bernt, 2025 marked a turning point for stablecoins, building on regulatory groundwork laid in earlier years. As rules become clearer, institutional participation in crypto is expected to increase. The shift from adapting traditional financial regulations to developing crypto-specific frameworks reflects broader acceptance of digital assets within the global financial system.
Bernt contrasted the U.S. approach with Europe’s regulatory model, pointing to the European Union’s Markets in Crypto-Assets Regulation (MiCA) as the first comprehensive, multi-jurisdictional framework for stablecoins. By comparison, the GENIUS Act introduces an equivalence regime that allows non-U.S. stablecoin issuers to operate domestically if they meet defined compliance standards, opening the door to foreign participation in the American market.
In Europe, however, MiCA does not include similar equivalence provisions, creating challenges for firms without a physical presence in the region. That contrast highlights the regulatory complexity facing global operators and underscores the importance of international coordination as the market evolves.
Looking ahead, Bernt questioned whether these developments represent true transatlantic alignment or merely partial convergence. While differences remain, particularly around prudential oversight, he noted growing consistency in compliance areas such as anti-money laundering and counter-terrorist financing. Initiatives like the OECD’s Crypto-Asset Reporting Framework point to increasing global cooperation aimed at improving transparency.
Max Bernt’s insights from Davos reflect a crypto sector at a critical crossroads. As lawmakers and industry leaders continue to debate how best to regulate digital assets, the balance between innovation, competition, and financial stability will shape the next phase of growth. With regulatory frameworks still taking form, the coming years will be decisive in determining whether cryptocurrency can achieve sustainable expansion while meeting rising expectations for safety and compliance.