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

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