The U.S. Senate is ready to pass a stablecoin regulation bill, while Ethereum and Bitcoin are almost gone from exchanges. Could this be the bull run and mass adoption?
Economy, macro news:
- The U.S. Senate voted to advance a stablecoin bill, which will now go to discussion.
Let’s briefly cover the key points:
Issuers with a total stablecoin issuance under $10 billion can be regulated at the state level, provided the state has the appropriate regulatory infrastructure. Larger issuers exceeding this threshold will fall under federal regulation, likely ensuring stricter oversight.The law includes new consumer protection measures aimed at ensuring transparency, safety, and stability of stablecoins. This includes requirements for reserve assets and reporting to minimize risks for users.Strict eligibility criteria for the IT sector, plus a ban on special individuals in public service issuing stablecoins. Elon Musk can’t create MuskUSD while involved in public service.
What’s happening with our crypto market:
- Exchange reserves have dropped to 4.9% for $ETH and 7.1% for $BTC.
This indicates growing confidence among traders and investors, with more people betting on the long-term prospects of $ETH and $BTC. For $ETH, this is the first such drop in history, while for Bitcoin, it’s a record low, reminiscent of November 2018.
- The stablecoin bill’s passage could catalyze broader cryptocurrency integration into the traditional financial system. This might lead to new products and the use of stablecoins in everyday payments. For us, this is already a familiar reality, but many people are still unaware of the convenience of USDT transfers.
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- However, the law’s consequences are concerning. Could the U.S. later crack down on DeFi companies, as seen with token launches that made U.S. citizens sanctioned by many projects, denying them airdrops? The legal framework and practice differ, but it’s worth considering.
