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Pryor Cashman Partner Jeffrey Alberts, Co-chair of the firm's Financial Institutions and FinTech Practices, was interviewed in FinTech Law Report on the growing influence of stablecoins and their impact on mergers and acquisitions activity across the financial services sector.
Jeffrey noted that clearer legislative frameworks are not simply integrating crypto into banking, but enabling stablecoin issuers to compete more directly with traditional financial institutions:
“In the medium term, stable-coins are likely to shift value in financial services away from the traditional deposit-and-payment rails and toward whoever controls the customer interface, wallets, on/off-ramps, and compliant liquidity management at scale.”
As regulatory frameworks become clearer, stablecoin issuers can compete more directly with traditional financial institutions, potentially driving consolidation among crypto providers as compliance and governance costs increase. Banks, he noted, may respond with strategic acquisitions to preserve distribution and customer relationships.
Addressing the broader regulatory environment, Jeffrey observed:
“It's probably not fair to say regulatory uncertainty has “greatly diminished” so much as that the uncertainty is now operating in a more favorable direction for crypto companies and products, with regulators signaling an intent to draw clearer lines but still needing time to show how those lines will be applied in practice.”
He added that while agencies such as the U.S. Securities and Exchange Commission have signaled a more constructive approach to crypto oversight, durable confidence will depend on consistent application over time.
“Traditional players do seem more assured about moving into alternative payment systems than they were during the Biden era, however, […] the industry won't have true confidence until there's a longer track record of consistent application.”
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