Stakeholders and Incentives
Incumbent banks, card networks, consumer groups, and crypto issuers have different goals: funding, fees, protection, and openness, respectively. Their interactions determine the pace and shape of restrictions.
Institutions and Rulemaking
Legislatures and agencies translate narratives into rules. Institutional bias often favors familiar architectures.
Narratives and Public Messaging
Safety and fraud themes dominate messaging; adoption stories emphasize speed, transparency, and cost.
Design Responses by Issuers
Rebates, fee discounts, disclosures, and audits improve compliance viability without removing user value.
Market Outcomes Under Restrictions
Restrictions slow retail yield, but payments and corporate use cases remain resilient, shifting innovation to compliant models.
Conclusion
Political economy explains stablecoin rules. Balanced regulation can enable safe innovation while mitigating real risks.