Stablecoin Leaders Caution About Challenges Ahead

At Consensus Miami 2026, executives from MoonPay, Ripple, and Paxos discussed how stablecoin regulation has fostered institutional adoption, but significant infrastructure and privacy challenges remain obstacles to mainstream acceptance.

During their May 8 address at Consensus Miami 2026, top executives from three leading stablecoin firms highlighted that new US regulations have significantly altered the competitive landscape for dollar-pegged tokens, enabling easier entry for traditional financial institutions that previously faced barriers. However, this shift has also unveiled new challenges that the industry must address.

Richard Harrison, MoonPay’s VP of banking and payment partnerships, remarked that the GENIUS Act has provided traditional finance with a clear regulatory framework. “What GENIUS brought us was clarity,” he said, adding that compliance now enables traditional finance companies to engage with stablecoins more swiftly.

Harrison likened the current state of stablecoin adoption to electric vehicles: while the core technology is functional, widespread adoption relies heavily on the supporting infrastructure. “How do you use stablecoin to pay your rent?” he asked. “How do you use it to buy a cup of coffee?”

Institutional demand versus real-world usability

Jack McDonald, SVP at Ripple, stated that institutional clients are increasingly concerned with practical aspects like regulatory compliance, custody security, and the utility of stablecoins beyond trading. He emphasized that Ripple is focusing on treasury functions, collateral management, and cross-border settlements as key use cases, insisting that real utility must drive adoption instead of speculation.

Harrison noted that while stablecoins currently hold a small portion of global remittance volumes, he anticipates that figure could rise to approximately 10% over the next five years as payment infrastructures improve and more merchants adopt digital dollar services.

Stablecoin-based international transfers already settle nearly instantaneously with fees under one dollar, compared to traditional banking costs that can exceed 6%.

Brent Perrault, a senior software engineer at Paxos, expressed that privacy continues to be a major unresolved challenge in the industry. Public blockchains reveal transaction values and the flow of funds, raising compliance and confidentiality issues for businesses dealing with sensitive financial data.

Perrault warned that partial privacy solutions are inadequate since users often transition between private and public blockchain environments. He suggested that trust, distribution partnerships, and user incentives are increasingly driving competition among stablecoin issuers, rather than just technical features.

Distribution gaps and what comes next

Perrault cited the growth of PayPal USD and Charles Schwab’s utilization of Paxos infrastructure as evidence of rising demand from established financial entities extending beyond crypto-native companies.

However, he noted that even well-capitalized issuers with solid compliance histories encounter substantial hurdles when linking stablecoin infrastructure to existing payment systems used by consumers and businesses.

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

While the executives at Consensus did not directly address this markup, their statements highlighted the importance of the regulatory landscape for companies working to build scalable stablecoin payment solutions.

The total market value of stablecoins currently stands at around 317 billion dollars. Earlier in May, Western Union announced its USDPT stablecoin on Solana, with issuance managed through Anchorage Digital.

This development underscores Harrison’s observation: while regulation has reduced entry barriers, the necessary infrastructure for stablecoins to function in everyday consumer contexts is still under development.