Cryptocurrency Week in the U.S. is accelerating the passage of stablecoin regulatory bills, creating a mixed public sentiment between hope and concern.
The U.S. House of Representatives is moving to vote on important bills to establish a clear legal framework for stablecoins, amid growing interest from businesses in integrating digital assets into operations.
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The U.S. House of Representatives is accelerating the process of passing two major bills: the CLARITY Act and the GENIUS Act to regulate stablecoins.
Divergent views between the expectation of capital flowing into the market and concerns about consumer rights and the dominance of tech companies.
Stablecoins are growing rapidly, the market is currently dominated by Circle and Tether, but has the potential to expand due to clarity in legislation.
What is the U.S. House of Representatives doing to regulate stablecoins?
The U.S. House of Representatives is in the process of preparing to vote on two key bills, the CLARITY Act and the GENIUS Act, aimed at refining the regulatory framework for stablecoins, according to a report from Reuters in June 2024. This is a move expected to mitigate legal risks and promote the development of cryptocurrency in the mainstream financial system.
The construction of laws to regulate stablecoins is seen as a response to the urgent need for transparency, ensuring safety for users and investors.
Reactions from experts and lawmakers regarding these bills?
Jag Kooner, head of derivatives at Bitfinex, assesses positively:
"As lawmakers develop the framework proposed by the industry, the sentiment of institutional investors rises. We expect the capital that was previously blocked due to legal uncertainties to return."
However, representative Maxine Waters, a California congresswoman, expressed concerns in an interview with CNBC in June 2024, stating that this bill may favor cryptocurrency industry interest groups over consumer protection.
"If the bill is passed, this could become a significant event in the history of U.S. financial law, similar to the Gramm-Leach-Bliley Act of 1999."
What are the benefits and impacts of stablecoins in business today?
Julia Demidova, Digital Currency Product Director at FIS, emphasizes the growing trend of businesses adopting stablecoins due to their stability and utility.
"Banks and businesses need to strategize around stablecoins to avoid being left behind in the rapidly developing fintech space."
Cryptocurrency analyst Nic Puckrin, founder of Coin Bureau, stated that the stablecoin market is currently almost monopolized by Circle (USDC) and Tether (USDT), but will expand with new issuers, especially traditional banks as the laws become clearer.
This promises to expand choices for users, enhance competition, and improve the quality of stablecoin products.
Concerns surrounding the GENIUS Act and the influence of tech companies?
Despite broad support, the GENIUS Act still faces criticism from Democratic lawmakers, who are concerned about shortcomings in consumer protection measures as well as the risk of enabling tech companies to issue their own stablecoins, contributing to market dominance.
Market conditions are closely interacting with fluctuations such as Bitcoin recently peaking at $122,000 and then dropping back to $117,000 due to geopolitical tensions related to U.S. tariff policies.
According to Visa On-Chain data from June 2024, the volume of stablecoin transactions on the platform reached $35.8 trillion, reflecting the increasing strength and popularity of stablecoins in payments.
"It is necessary to ensure that the legal framework does not leave gaps for tech companies to manipulate and dominate the stablecoin market."
Internal insights from a financial law expert, updated June 2024.
What are the forecasts for the stablecoin market in the near future?
Experts and business leaders agree that if an effective legal framework is enacted, stablecoins will become an important financial tool, not only in payments but also in DeFi and fund management.
Diversifying stablecoin supply from traditional financial institutions will increase competition, reduce concentration risks, and expand the range of users accessing more stable cryptocurrencies.
Frequently Asked Questions
What are the highlights of the CLARITY Act and the GENIUS Act? These two bills propose a clear legal framework for stablecoins, aimed at protecting users and promoting the sustainable development of cryptocurrencies in the U.S. How many major issuers of stablecoins are there currently? The market is currently dominated by Circle (USDC) and Tether (USDT), and is expanding with new issuers from traditional finance. What is the reaction of experts to this legislation? Many experts expect this to be a positive step for the industry, while some lawmakers worry that the bill does not adequately protect consumers. What is the impact of stablecoins on the traditional financial market? Stablecoins increase liquidity and diversify financial tools, and are being actively researched and adopted by banks and businesses. How can users stay safe when using stablecoins? Users should choose stablecoins that are tightly regulated, highly transparent, and from reputable issuers, following financial expert guidance.
Source: https://tintucbitcoin.com/stablecoin-tranh-luan-tuong-lai-tien-so/
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