Kevin Lehtiniitty of Borderless Weighs in on Crypto’s Regulatory Future

February 18, 2025 – As the new year unfolds, the crypto community is increasingly optimistic about the future of digital asset regulation under President Donald Trump’s administration. Kevin Lehtiniitty, CEO of Borderless.xyz, shared his perspective on the industry's regulatory landscape, noting that the long-standing demand for clearer regulations is finally being addressed. "A large issue in the crypto world, especially the past four years, hasn't been the particular regulation that's been applied to the crypto industry, it's been the explicit lack of any regulation," Lehtiniitty said, emphasizing the desire for clarity.

Industry leaders, such as Mike Lempres, former Coinbase legal chief, and Kavita Gupta, founder of Delta Blockchain Fund, echoed this sentiment, highlighting the industry's optimism about the Trump administration's willingness to collaborate with crypto companies on legislation. This collaboration has resulted in significant developments, including President Trump’s executive order to advance cryptocurrency in the U.S. and the SEC’s repeal of the SAB 121 rule, which required companies to hold crypto assets as liabilities.

While the Trump administration's actions are seen as a positive step for the crypto community, clarity in the classification of digital assets remains a key challenge. Lempres and Nabil Manji, Senior VP at Worldpay, emphasized the importance of defining crypto assets as commodities, securities, or a new asset class entirely to ensure a stable regulatory environment. Caitlin Long, CEO of Custodia Bank, called for the establishment of “guardrails” to ensure a lawful and conducive environment for crypto companies.

The ongoing discussions around the GENIUS Act, which focuses on stablecoins and is part of the regulatory reforms under the Trump administration, have also generated significant interest. Lehtiniitty expressed his support for the act’s balanced approach, noting that it allows for innovation while ensuring proper oversight of larger stablecoin issuers and startups alike.

Overall, the evolving regulatory landscape is seen as a key factor in unlocking the full potential of the crypto industry, allowing it to thrive in a more structured and predictable environment. As Lehtiniitty concluded, "People seem to be very excited about it because it does allow for these large-impact stablecoins to be really tightly regulated, and it still allows for startups to try to innovate and build new products in the space."

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