The bill aims to establish a federal regulatory framework for payment stablecoins, allowing issuers with a market value of less than $1 billion to choose state-level regulation, leading to disputes over federal and state authority. Democrats warn that the bill's loopholes could lead to systemic risks, reminiscent of the collapse crisis similar to Terra Luna. Currently, the bill is set to undergo a full Senate vote before May 26, but opposition voices may force significant amendments or even delay its passage.

The industry has divided views on the bill's prospects; supporters believe it is beneficial for crypto innovation, while opponents call for stricter federal regulation.