There has been increasing attention from US legislators towards stablecoin companies due to concerns about their potential effects. It is believed that without proper regulation, stablecoin projects could undermine the dominance of the US dollar. Dante Disparte from Circle emphasized the urgency of addressing legislation targeting stablecoin projects to prevent detrimental impacts on the US economy.

Former chairman of the Commodity Futures Trading Commission, Timothy Massad, voiced his worries about stablecoin projects and cryptocurrencies operating without adequate monitoring. He expressed concerns that these digital assets could be used by malicious actors to evade US economic sanctions, posing a threat to economic and political goals. Against this backdrop, bipartisan legislation like the Lummis-Gillibrand Stablecoin Payment Act aims to establish a regulatory framework for stablecoin projects.

The proposed bill, endorsed by senators Cynthia Lummis and Kirsten Gillibrand, seeks to uphold the dominance of the US dollar and maintain the dual banking system. Additionally, the McHenry-Waters stablecoin bill, currently in the US House of Representatives, is expected to progress soon. According to Massad, the Lummis-Gillibrand bill is a positive step toward regulating stablecoin projects, particularly by subjecting issuers to the Bank Secrecy Act to monitor suspicious activities.

Kristin Smith, CEO of the Blockchain Association, believes that effective stablecoin legislation will strengthen the global position of the US dollar and encourage responsible innovation in the crypto asset sector within the country. Lummis and Gillibrand's bipartisan approach to regulating crypto assets has garnered support, emphasizing the importance of recognizing the significance of stablecoin projects in the market and fostering innovation through appropriate legislation.