'The Devil Will Be In The Details': What To Expect From New Crypto Legislation

According to Custodia Bank‘s founder and CEO, Caitlin Long, the evolving dynamics in Washington could soon alter the digital asset industry.

"I expect a stablecoin bill to be implemented and anticipate a market structure bill to pass as well,” she said, during a recent interview. The content of these laws, however, could significantly shape the future of digital assets.

Long, a veteran in finance with a focus on blockchain, discussed how the newly projected pro-crypto Congress could affect the broader adoption of digital assets in the U.S.

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Pro-Crypto Congress: What's Next?

Long anticipates that two types of legislation — a stablecoin bill and a broader market structure bill — could set the foundation for regulating and adopting digital assets nationwide.

“The devil will be in the details,” she said. “For example, will the bill support self-custody of crypto assets, or require all users to hold them at regulated custodians? The former would boost adoption for payment use cases, while the latter would hinder adoption by restricting it only to the banked (while excluding the unbanked).”

One of the debates in the upcoming legislation will be whether users can maintain self-custody of their crypto assets or if they will be required to use regulated custodians. Self-custody could enhance adoption, particularly in payment use cases, by giving users more control over their assets, Long notes.

This regulatory decision could have a broad impact, influencing how accessible digital assets become to different populations.

A Focus at the Benzinga Future of Digital Assets Event

Long is slated to speak at the Benzinga Future of Digital Assets event, where she is expected to delve deeper into these topics. As the conversation around stablecoins and self-custody continues to gain momentum, her insights could play a critical role in understanding how policy changes may impact the digital asset landscape.

As the potential for new legislation looms, Long's observations offer a clear look into the regulatory challenges and opportunities. Her views reflect a critical moment for digital assets as lawmakers determine how to integrate these technologies within the existing financial framework.

As the digital asset market continues to mature, the convergence of regulatory shifts, M&A activities, and adoption trends will define the future of this dynamic field. Benzinga’s Future of Digital Assets event in New York City this November will provide industry leaders and investors with a platform to explore these developments further, offering insights into the evolving regulatory environment and the latest market dynamics.

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