Global foreign exchange and payments platforms are lobbying hard against stablecoins

Global foreign exchange and payments platforms are lobbying hard against stablecoins, which stand to significantly disrupt their business models

Despite being a contentious topic, cryptocurrency investor Kevin O’Leary believes that legislation for stablecoins could come as early as the spring.

Speaking at Consensus 2025, O’Leary said that global foreign exchange and payments platforms are likely to lobby hard against the technology, which stands to significantly disrupt their business models.

Legacy forex and payments platforms often extract large fees for servicing cross-border cash transfers and would lose out on revenue if regulated stablecoins become accepted as a cheaper, faster alternative, he explained.

“They take a 1 to 1.5% fee on foreign exchange, and it’s a multi-trillion dollar market. It’s the last vestige of the 15th century, and they’re still cutting these huge cheques to service it.”

Once the US government approves legislation for a new category of private, bank-issued and stablecoins, that market will become "efficient, transparent, and inexpensive".

Stablecoin legislation

Lawmakers in the US are working on legislation that stands to accelerate global adoption of stablecoins, O’Leary added.

O’Leary’s comments come as US Senators are aiming to pass the so-called Genius Act — a framework for regulating stablecoins — by the end of May.

Once the SEC approves the stablecoin act, every regulator in the US’s circle — Abu Dhabi, Switzerland, England — will follow, he said.

“Who’s worried about this? The financial services industry. They hate this idea, and they’re working very hard to stop that bill from happening right now.”

The cryptocurrency sector has been pushing for greater regulatory clarity in the US, which may be needed to unlock trillions of dollars in institutional capital.

As part of broader efforts to integrate cryptocurrencies into the US financial system, lawmakers are also working on legislation to regulate crypto exchanges and introduce a national strategy for digital assets.

As of May 15, stablecoins are collectively worth nearly $250 billion in market capitalization, according to data from CoinGecko.

Tether’s US-dollar pegged stablecoin USDT is the leader, with a market cap of around $150 million, the data showed. It’s followed by Circle’s USDC, another US-dollar pegged stablecoin with a market cap of more than $60 billion.