Stablecoin Leaders Warn of Upcoming Challenges

At Consensus Miami 2026, leaders from MoonPay, Ripple, and Paxos examined how stablecoin regulation has promoted institutional adoption, though notable infrastructure and privacy challenges persist as barriers to broader acceptance.

During their May 8 presentation at Consensus Miami 2026, executives from three prominent stablecoin companies underscored that recent US regulations have reshaped the competitive environment for dollar-pegged tokens, facilitating entry for traditional financial institutions that previously encountered challenges. However, this transformation has also revealed new hurdles that the sector must navigate.

Richard Harrison, MoonPay’s VP of banking and payment partnerships, noted that the GENIUS Act offers traditional finance a clear regulatory framework. “What GENIUS brought us was clarity,” he remarked, adding that compliance now allows traditional finance firms to engage with stablecoins more rapidly.

Harrison compared the current phase of stablecoin adoption to that of electric vehicles: while the underlying technology is operational, widespread uptake heavily relies on supporting infrastructure. “How do you use stablecoin to pay your rent?” he questioned. “How do you use it to buy a cup of coffee?”

Institutional demand versus real-world usability

Jack McDonald, SVP at Ripple, indicated that institutional clients are increasingly focused on practical aspects such as regulatory compliance, custody security, and the utility of stablecoins beyond mere trading. He stressed that Ripple is concentrating on treasury functions, collateral management, and cross-border settlements as pivotal use cases, arguing that real utility should drive adoption rather than speculation.

Harrison pointed out that while stablecoins currently represent a small fraction of global remittance volumes, he predicts that this figure could reach approximately 10% over the next five years as payment infrastructures improve and more merchants embrace digital dollar services.

Stablecoin-enabled international transfers already settle almost instantaneously with fees under one dollar, in contrast to traditional banking costs that can exceed 6%.

Brent Perrault, a senior software engineer at Paxos, stated that privacy remains a significant unresolved issue in the industry. Public blockchains expose transaction values and fund flows, creating compliance and confidentiality challenges for businesses handling sensitive financial information.

Perrault cautioned that partial privacy solutions are insufficient, as users often move between private and public blockchain settings. He proposed that trust, distribution partnerships, and user incentives are increasingly fostering competition among stablecoin issuers, rather than solely technical attributes.

Distribution gaps and what lies ahead

Perrault mentioned the emergence of PayPal USD and Charles Schwab’s use of Paxos infrastructure as indicators of growing demand from established financial entities expanding beyond crypto-native businesses.

However, he noted that even well-funded issuers with robust compliance records encounter significant obstacles when connecting stablecoin infrastructure to existing payment systems used by consumers and businesses.

The panel’s insights at Consensus Miami coincided with the CLARITY Act’s progression towards a markup in the Senate Banking Committee on May 14. As previously reported by crypto.news, five major banking trade organizations opposed the Tillis-Alsobrooks stablecoin compromise language shortly before the vote.

While the executives at Consensus didn’t directly address this markup, their remarks underscored the significance of the regulatory environment for companies striving to develop scalable stablecoin payment solutions.

The total market capitalization of stablecoins currently hovers around 317 billion dollars. Earlier in May, Western Union unveiled its USDPT stablecoin on Solana, with issuance managed by Anchorage Digital.

This development reinforces Harrison’s observation: while regulation has eased entry barriers, the essential infrastructure for stablecoins to operate in daily consumer settings is still being developed.