The trajectory of stablecoin regulation in the United States could inadvertently catalyze a global competitive landscape for yield-bearing digital assets, according to a leading industry executive. Takatoshi Shibayama, Asia-Pacific lead at the prominent crypto wallet firm Ledger, suggests that a restrictive U.S. approach may prompt other jurisdictions to actively court issuers by offering more favorable regulatory frameworks.
In an interview with Cointelegraph, Shibayama posited that a widespread U.S. ban on third-party platforms distributing stablecoin yields would “definitely opens up a conversation” among international regulators, institutional players, and stablecoin issuers. He noted that countries like Australia have already established a specific regulatory “carveout” for certain stablecoin activities, creating a potential blueprint. However, he observed a current global norm where most stablecoin projects outside the U.S. deliberately avoid offering yields to users, primarily to safeguard traditional banking relationships and navigate regulatory uncertainty.
“If that were to change in the US, then I think it definitely opens up a lot of conversation between the stablecoin issuers and the regulators to allow yields or rewards to be passed through to their user base,” Shibayama stated, framing the issue as a pivotal moment for competitive regulatory policy.
Takatoshi Shibayama, pictured in an interview in June, says it’s likely other countries could move on stablecoin yields if the US doesn’t. Source: YouTube
U.S. Legislative Stalemate on Stablecoin Yields
The U.S. Senate’s ongoing effort to establish a comprehensive crypto regulatory framework has hit a significant hurdle. A provision, supported by banking lobbyists, aims to prohibit third-party platforms from offering yields on stablecoins—a practice that allows users to earn interest on their holdings. This contentious clause has stalled the broader legislation, facing strong resistance from the crypto industry’s lobbying groups who argue it stifles innovation and consumer choice in a rapidly evolving market.
Asia’s Institutional Shift: Blockchain Over Crypto
Shibayama highlighted a pronounced strategic divergence in Asia, where major financial institutions are intently focused on the foundational utility of blockchain technology, largely decoupling it from speculative cryptocurrency investing. “Since last year, there has been a bit of a decoupling of crypto and the rest of blockchain technology” in the region, he explained.
He detailed that these institutions are predominantly exploring two practical applications: the tokenization of traditional financial products and the issuance of private, regulated stablecoins for payments and settlements. “They’re really looking at: Can they tokenize their financial products? Can they issue stablecoins?” Shibayama said. “There’s been lots of talks around that as opposed to offering DeFi and staking.” This marks a maturation where the conversation centers on operational efficiency and new financial infrastructure, not retail-facing crypto asset exposure. “The institutions have carefully selected what they want out of this blockchain technology and then leaving crypto — the Bitcoins and Ethereums of the world — out of the conversation.”
A Nuanced View from Asset Managers
Shibayama noted a slight exception within the broader institutional landscape. Asset managers, he said, remain more exploratory, considering crypto-native products to diversify their offerings for clients. A key driver for this segment is the comparatively less stringent custody requirement in many jurisdictions, allowing more flexibility.
“They are a little bit different… and are also drawn to doing so as there aren’t ‘strict regulations around them having to have a regulated custodian,'” Shibayama remarked. However, he underscored a clear industry trend toward rigor: “Obviously, they prefer to have regulated custodians. They’re becoming a lot more selective on how they choose their custody provider.” This indicates a growing demand for institutional-grade security and compliance, even in more permissive regulatory environments.
Additional reporting by Stephen Katte.
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