Ethereum and Solana Face March 1 Bloodbath Warning as Stablecoin Regulation Decides Their Fate

▲ Ethereum (ETH), Solana (SOL)/ChatGPT-generated image

As the March 1 deadline for stablecoin regulation negotiations led by the White House approaches, volatility in the cryptocurrency market is expected to increase, led by Ethereum and Solana. The outcome of these talks is likely to serve as a key factor in determining whether digital assets will be integrated into the institutional financial system.

According to CoinGape, the U.S. administration has set March 1 as the negotiation deadline to resolve the issue of stablecoin yield payments, a key point of contention in the proposed U.S. cryptocurrency market structure bill. The White House is currently coordinating positions between the banking sector and the crypto industry regarding whether stablecoin issuers should be allowed to provide interest or rewards to users. If the stablecoin regulatory bill, known as GENIUS, is aligned with the broader U.S. cryptocurrency market structure legislation, it could bring transformative changes to market liquidity.

Ethereum (ETH) is being cited as a primary beneficiary of clearer regulations. Market observers believe that if regulatory risks are reduced, Ethereum could recover the $2,100 level. Increased stablecoin liquidity could drive substantial institutional capital into the Ethereum ecosystem. While factors such as asset sales by Vitalik Buterin or broader macroeconomic conditions remain variables, the broader trend toward institutional adoption is seen as a major driver of Ethereum’s value.

Solana (SOL) is also moving toward the goal of surpassing $100. Thanks to its fast processing speed and low fees, Solana is considered a key infrastructure network for stablecoin payments and real-world asset tokenization. If Bitcoin (BTC) regains the $72,000 level and the U.S. cryptocurrency market structure bill achieves meaningful progress, institutional buying interest in Solana could strengthen further. Once regulatory guidelines are finalized, projects within the Solana ecosystem are expected to accelerate their activities.

However, if negotiations break down, downside pressure may intensify. Banks are calling for stringent regulations, concerned that high-yield stablecoin products could encroach on traditional deposits, while the crypto industry argues that excessive restrictions would stifle innovation. The White House has proposed a compromise that would prohibit direct interest payments while allowing transaction-linked rewards. Failure to reach an agreement by the deadline could delay the legislative process and negatively impact the market.

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