There's a New Regime in the White House: Can Regulations Solve Blockchain’s Real Problems?

In the wake of President Trump’s Executive Order on Strengthening American Leadership in Digital Financial Technology and the SEC’s repeal of Bill 121, the blockchain and cryptocurrency industry is buzzing with optimism. These regulatory updates undeniably signal a more supportive environment for blockchain innovation in the US, but there are deeper challenges to address before blockchain technology can fully transform business and our everyday life.

A Positive Tailwind, But Not Yet a Revolution

President Trump’s executive order has many predicting a golden era for crypto. If rising token prices are the measure of progress, then perhaps they’re right. However, the true promise of blockchain lies in its ability to deliver efficiency, transparency, and security that could fundamentally reshape industries and society. By this metric, significant structural hurdles remain.

Similarly, the SEC’s repeal of Bill 121, which now allows U.S. banks to custody cryptocurrencies, is a notable milestone. It opens doors for banks to tap into new markets, but it’s far from a comprehensive solution to the operational and technical challenges that prevent banks adoption of public blockchain networks. Barriers like volatile transaction costs, compliance, scalability limitations, poor user experiences, and integration complexities persist.

Capital Inflows and Shifting Strategies

There is no doubt that these regulatory shifts will attract capital to the blockchain space. Already, the industry is responding. For example, a16z has already announced plans to close its London office and refocus its blockchain investments in the United States, signaling confidence in this new regulatory environment.

Yet, this optimism must be tempered with caution. The launch of projects like “Trump Token” illustrates the ongoing speculative frenzy that plagues the crypto space. These types of initiatives do little to advance blockchain’s strategic potential or solve real-world problems.

The Road Ahead for Commercial Use Cases

For enterprises and institutions emboldened by a supportive administration and clearer regulatory guidelines, the time is ripe to explore the transformational power of blockchain and integrations with public networks. However, what’s under appreciated is most will encounter the same unsolved challenges that have hindered blockchain’s mainstream adoption over the past decade:

• Volatile Costs: Highly unpredictable and costly transaction fees.
• Scalability: 'Tokenomic' constraints limit the scale of blockchain networks
• Poor User Experience: Unfamiliar user experience, the introduction of transactions fees for every action, and complex wallet requirements all compound to few users
• Integration Complexity: all the above make integrating blockchain into traditional workflows highly challenging with most businesses taking a wait-and-see approach.

At STABILITY, we’ve spent years working on addressing these key adoption barriers, focusing on simplicity, predictability, and scalability. Unlike all public blockchains before us, STABILITY’s Global Trust Network is crypto-free, feeless, scalable, and designed to integrate seamlessly with traditional enterprise systems—no need to wait for the tech or regulations to catch up.

Collaboration for Real Progress

The silver lining in these regulatory developments is the opportunity they create for collaboration. With a more supportive administration, there’s a renewed chance for industry leaders, enterprises, and government agencies to come together to tackle these challenges head-on.

While these recent policy changes provide a meaningful tailwind, the real opportunity lies in creating innovative blockchain networks that solve the practical challenges businesses face. That’s where the future of blockchain will be defined, not in token price go up.

At STABILITY, our mission is to unlock the full potential of blockchain technology by addressing the structural issues that prevent it from being accessible and achieving mainstream adoption. We look forward to working closely with the new administration and other stakeholders to make systems more efficient, transparent, and secure—not just for businesses, but for society at large.

The road to ubiquitous blockchain adoption will not be easy, but with the right focus and collaboration, the industry has never been better positioned to realize its transformative potential.