As Tether participates in the regulation of US stablecoins, a clearer regulatory framework can strengthen the use and trust of stablecoins like USDT. This may lead to greater institutional adoption, further solidifying the role of stablecoins in the cryptocurrency ecosystem.
The clarity of regulation may provide protection for major cryptocurrencies like Bitcoin and Ethereum, thereby enhancing investor confidence. The absence of regulatory uncertainty may lead to a surge in adoption rates, especially among institutional participants who have been hesitant due to a lack of rules.
Smaller altcoins may face stricter scrutiny. As regulations tighten, altcoins lacking clear use cases or funding support may struggle to remain relevant, potentially leading to market consolidation. Only projects with strong development teams and use cases are likely to endure.
As Tether takes steps to ensure compliance, the global liquidity of the cryptocurrency market may improve. Under stablecoin regulation, the support of real-world assets for USDT may encourage more trading volume and make it easier for market participants to safely transfer funds across borders.