New stablecoin regulations in the US are set to bring significant changes to the cryptocurrency market.
Expectations for Stablecoin Legislation
Bo Hines from the U.S. Digital Assets Working Group indicated that stablecoin regulations might be finalized within two months. He expressed hope that the bill would be discussed in the Senate and House of Representatives in May. The regulation's significance lies in its impact on US stablecoin issuers who dominate the market.
Role of Market Participants and Competition
The Senate Banking Committee approved the GENIUS Act, led by Senator Bill Hagerty, aimed at regulating the stablecoin market. The bill awaits discussion in the House of Representatives and enjoys bipartisan support. U.S. Treasury Secretary Scott Bessent stated that the U.S. is looking to stablecoins to maintain the dollar’s status as the global reserve currency.
Participation of Financial Institutions
The Office of the Comptroller of the Currency announced that local banks could partake in stablecoin transactions. This move paves the way for global financial institutions to take similar steps and establish their presence in this area.
Details of the new regulation are expected to become clearer following legislative discussions. Market participants and stakeholders will continue to assess the economic impacts and market shifts regarding its implementation.
