Cryptocurrency and Stablecoins Move Closer to Mainstream Finance Amid Regulatory Clarity

NEW YORK, Feb. 5, 2026 /PRNewswire/ -- Fi-Tek LLC's perspective by Mike Tropeano, SVP of Client Engagement & Practice Management, on stablecoins, regulation, and the path to mainstream adoption.

Despite continued volatility in digital asset markets, cryptocurrencies—particularly stablecoins—are increasingly positioned to become part of mainstream, traditional finance. Regulatory clarity and growing momentum around tokenized securities are accelerating institutional interest and adoption.

A key inflection point came with the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act in July 2025. The legislation established a regulatory framework for stablecoin issuance in the United States, requiring coins to be fully backed by liquid assets such as U.S. dollars or short-term Treasury securities. Issuers must provide monthly public disclosures detailing reserve composition and comply with strict marketing rules to prevent misleading claims related to government backing, federal insurance, or legal tender status.

Stablecoins are designed to maintain a stable value by being pegged to real-world assets. Their appeal lies in the ability to move funds more efficiently and in near real time, reducing reliance on traditional banking settlement infrastructure and removing friction from the transaction process.

Momentum increased further in December 2025, when the U.S. Securities and Exchange Commission issued a no-action letter to the Depository Trust & Clearing Corporation (DTCC). The guidance allows DTCC to tokenize DTC-custodied securities in a controlled production environment on approved blockchains, while remaining compliant with federal securities laws. DTCC has indicated it is targeting a launch in the second half of 2026.

"It's natural for the industry to begin to look at blockchain as the next generation of software to carry assets," said Frank La Salla, President and CEO of DTCC, in an interview with CNBC.

Despite regulatory progress, traditional cryptocurrencies remain volatile. Bitcoin experienced significant price swings throughout 2025, reinforcing concerns around speculation and short-term trading behavior. Merrill Lynch has noted that crypto performance can be heavily influenced by media coverage and investor sentiment.

At the same time, regulatory actions—including an August 2025 Executive Order directing federal agencies to explore crypto exposure in retirement solutions—have encouraged established financial institutions to build digital asset infrastructure. BNY and State Street have both announced initiatives supporting tokenized deposits, custody, and digital asset platforms.

While some organizations remain cautious, tokenized securities and stablecoins are expected to become part of the broader investment ecosystem as adoption continues to evolve.

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Cryptocurrency and Stablecoins - Is now the time they become more mainstream - Mike Tropeano, CFA -…

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Arpita Chatterjee
Director of Strategic Client Initiates, Fi-Tek
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SOURCE Fi-Tek LLC