In recent years, stablecoins like USDT and USDC have surged in popularity, raising concerns about potential risks to both the crypto industry and the global financial system. The possibility of a bank run remains a key issue on the agenda.
Stablecoin Bill: A New Step Towards Regulation
According to Bloomberg, the Trump administration and Congress are working on legislation to enhance the role of stablecoins within global payment infrastructure. The Senate Banking Committee has approved the bill, yet Senator Elizabeth Warren criticized the proposal for insufficiently protecting the financial system from potential risks.
Bank Run Risks and the Role of Stablecoins
Analysts from the Federal Reserve Bank of New York and the Financial Stability Oversight Council have warned about potential bank risks related to stablecoins. Researcher Matthew Bisanz highlighted that theoretically, USD-backed stablecoins should not experience liquidity crises.
Strengthening and Legitimizing Stablecoins to Support the Dollar
Howard Lutnick, Trump's Secretary of Commerce, believes legitimizing stablecoins will bolster the role of the US dollar as a global reserve currency. Notably, some experts, like Nellie Liang, point to the necessity of having safe and liquid reserves for such coins to function effectively.
Regardless of differing viewpoints on stablecoins, their impact on the financial system is undeniable. Developing legislative measures and discussing regulatory levels demonstrate that stablecoins are becoming a noteworthy part of the global financial ecosystem, and their future evolution will require the attention of all stakeholders.
