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Jose Fernandez da Ponte, senior vice president of digital currencies at PayPal, warns major cryptocurrency regulations won’t happen overnight.
In an interview with Scott Melker, host of the Wolf of All Streets podcast, Fernandez da Ponte noted that while optimism is growing, major regulatory shifts — such as stablecoin legislation — still depend on Congress.
Stablecoins are digital assets pegged to currencies like the US dollar, designed to reduce volatility in crypto markets.
“Those still need to go through Congress, and those things take time,” he noted. “Even if it is a more positive environment, fundamental changes still… it will take time.”
He mentioned the growing market of non-USD-denominated stablecoins, especially in Europe and Asia.
“If you look at the space from a payments perspective, it is important that there are other currencies that you can interact in stablecoin with,” he explained. “So I do expect that with MiCA coming into effect in the European Union, you will see more euro-denominated stablecoins out there, and that’s an important development.”
The Markets in Crypto-Assets (MiCA) framework is the European Union’s regulatory framework for crypto, including stablecoins. It sets rules for issuance, reserves, and compliance.
He also pointed to recent stablecoin issuances outside the US, including those in Singapore and the Middle East.
“There [was] recent news about USDG and other stablecoins that are being issued out of Singapore and the Middle East, and I think that that’s super, super interesting,” he said.
Stablecoins hit a $190 billion market cap
Stablecoins have now surpassed $190 billion in global circulation. While the vast majority — 98% — of stablecoins are pegged to the US dollar, over 80% of transactions occur outside the United States. This means that despite their ties to the dollar, stablecoins are primarily influenced by regulatory frameworks set in Europe, Asia, and Africa.
In Congress, two major bills are currently under consideration. The Clarity for Payment Stablecoins Act, which has been debated by the House Financial Services Committee for the past year, has come close to bipartisan consensus multiple times. The bill has since evolved into a discussion draft proposed by Senator Bill Hagerty. Meanwhile, the Lummis-Gillibrand Payment Stablecoins Act was introduced in the Senate in May 2024 and is also awaiting further deliberation.