The U.S. "Stablecoin Act" aims to establish a clear regulatory framework for stablecoins, which has a dual impact on the cryptocurrency market.
On one hand, the bill helps enhance market confidence and promotes the dominance of the dollar in the digital economy. With clearer regulations, institutional participation is expected to increase, which may reduce market volatility, a significant benefit for stablecoins like USDC or USDT.
On the other hand, the bill poses potential challenges to decentralized finance. It requires stablecoin issuers to hold 1:1 dollar or highly liquid asset reserves, which puts pressure on decentralized stablecoins like DAI that do not fully rely on fiat reserves, potentially limiting innovation.
Additionally, the bill has sparked political controversy, with concerns that it will further consolidate large tech or financial institutions' control over public assets and may even weaken the role of traditional banking systems.
Overall, stablecoin legislation is an important step towards the maturity of digital finance, but it needs to be designed carefully to balance regulation and innovation, ensuring financial diversity and openness.
