This Week in Blockchain: Stablecoins Distance Themselves From Crypto Markets

The one constant throughout crypto’s history has been the same question: Where is the sector headed next?

For crypto markets, the answer appears, at least for the past few days, to be “down.” The price of bitcoin and other popular digital assets have plummeted, with crypto markets at their lowest in three months as of Wednesday (March 12). Of course, the equity markets haven’t been doing much better on news of tariff uncertainty.

Still, after years of uncertainty, the regulatory environment around cryptocurrency is beginning to take clearer shape in the U.S. Unlike previous market cycles where stablecoins were largely tied to crypto trading activity, the news this week revealed that there is now a focus on real-world utility, including cross-border payments, remittances and corporate treasury management.

As major players from financial institutions to policymakers continue to make strategic moves, the question, as always, remains: Where is crypto headed next?

Read more: The Payment Professional’s Key Takeaways From Trump’s Crypto Summit

Stablecoins as Bridge Between Traditional Finance and Crypto

Stablecoins have emerged as one of the most promising digital asset classes, with industry leaders touting their potential to revolutionize payments. Traditional financial giants are actively exploring their own stablecoin initiatives. However, regulatory frameworks surrounding stablecoins remain fragmented and have kept certain players on the sidelines. But that’s all beginning to change.

During testimony and under questioning by representatives of the House Financial Services Committee, witnesses, including executives from PayPal and Stripe, told lawmakers Tuesday (March 11) that payment stablecoins, blockchain and other digital innovations, including tokenization, will enable more efficient money movement across the globe, while ensuring primacy of the U.S. dollar.

At the same hearing Tuesday, House Financial Services Committee Chairman French Hill, R-Ark., said he supports the development of a federal framework for payment stablecoins and opposes the creation of a central bank digital currency (CBDC).

In his remarks, Hill said he supports two bills recently introduced or re-introduced in the House: the STABLE Act, which is focused on stablecoins, and the Anti-CBDC Surveillance State Act, which would prohibit a U.S. CBDC.

PYMNTS reported Monday (March 10) how the world’s biggest banks and FinTechs are scrambling to roll out their own stablecoins.

See also: OCC Says Banks Can Hold Crypto, but Should They?

The Regulatory Pendulum Swings

After years of uncertainty, the regulatory environment around cryptocurrency is beginning to take clearer shape.

Under the Trump administration, the first-ever White House “Crypto Summit” signaled a newfound openness to digital assets. While light on specific regulations, the event emphasized America’s need to lead in blockchain innovation and digital finance. President Donald Trump’s remarks reflected a shift in tone, acknowledging crypto’s potential economic impact rather than focusing solely on its risks.

After the White House Crypto Summit held Friday, the Office of the Comptroller of the Currency reclarified certain crypto banking permissions, confirming that crypto-asset custody, certain stablecoin activities and participation in independent node verification networks such as distributed ledger are permissible for national banks and federal savings associations, PYMNTS reported.

Despite its promise, the crypto sector continues to grapple with security breaches and high-profile legal cases. The cryptocurrency exchange OKX recently found itself under regulatory scrutiny following a major hack at Bybit, raising concerns about the industry’s ability to safeguard user funds.

Meanwhile, former FTX CEO Sam Bankman-Fried is making headlines again, reportedly lobbying for a presidential pardon following his conviction on fraud charges. His downfall remains one of the most dramatic collapses in financial history.

More like this: Regulations Become Crucial as Stablecoins Push Payments Frontier

Crypto Innovation in the Marketplace

On Tuesday, crypto payments network Mesh announced it had raised $82 million in a Series B funding round to accelerate product development and the expansion of its application programming interfaces (APIs).

Elsewhere, cryptocurrency firm Gemini, headed by billionaire twin brothers Cameron and Tyler Winklevoss, reportedly filed confidentially for an initial public offering (IPO). Cryptocurrency exchange Kraken is also reportedly preparing to go public as soon as the first quarter of 2026. The plan came after the company settled one case with the SEC and fought another one until the SEC agreed to drop it.

Looking ahead, the future of cryptocurrency will depend on the balance between regulation, innovation and market adoption. If regulatory clarity continues to improve, stablecoins could become the default choice for cross-border payments, bridging the gap between traditional banking and decentralized finance. Meanwhile, as security measures tighten and institutions adopt blockchain-based solutions, trust in digital assets may grow.

Whether driven by regulatory shifts, technological advancements, or evolving consumer behavior, the next chapter of digital finance is being written now.