The U.S. Senate has passed bipartisan legislation moving forward to regulate stable regulations, a measure backed by the cryptocurrency department and President Donald Trump. The bill will face final approval as early as next week after a 68-30 procedural vote on Wednesday, according to Go to Bloomberg.
Stablecoin Bill gains momentum
This advance comes after similarly advanced high heels in the House, and the Financial Services and Agriculture Committee has also proposed broader cryptocurrency legislation. It is worth noting that Republican lawmakers have successfully defeated an attempt to limit Trump’s potential profits from cryptocurrency businesses.
Stablecoin legislation aims to create clear guidelines for pegged digital tokens Traditional currencyjust like the dollar. Proponents believe that regulations will help integrate Stablecoins into mainstream payment systems, thereby enhancing its availability and acceptance.
Senate Majority Leader John Thune’s swift passage of the stability bill urged the House to speed up its approval and send it to the president’s desk.
Meanwhile, Senate Bank Chairman Tim Scott expects he will be hearings on broader crypto regulations in July, despite his hopes of any comprehensive legislation in the fall.
Transaction efficiency of credit card giants
Supporters of the Stablecoin initiative, including Finance Minister Scott Bessent, have highlighted the potential of USD fixed Stablecoins to enhance demand for USD and government debt.
Under the proposed legislation, issuers will be required to maintain USD reserves against USD Ensure regulatory supervision in short-term government securities and other assets.
Retailers have also been voice advocates for the bill, hoping that Stablecoins will provide a more efficient and cost-effective way to trade than existing credit card systems. However, they tried to attach regulations to promote competition with major credit card networks such as Visa and MasterCard.
The potential impact of smaller banks on stable banks on deposit and credit supply has attracted attention. By contrast, larger banks are exploring the prospect of issuing their own stablecoins, which could make profits from accrued interest Reserve assets.
Issuer’s Failure Worries
Despite the momentum of stabilizing the bill, criticism remains. Democrats led by Sen. Elizabeth Warren believe the legislation lacks adequate consumer protection to make customers vulnerable when issuers fail.
Supporters remain hopeful, and Matt Hougan, chief investment officer of Bitwise Asset Management, asserted that the successful passage of the legislation could enhance the dollar’s position as a global reserve currency. “If we pass Stablecoin legislation, we will export the dollar globally,” he stressed.
In addition, Vanguard’s global rate head Roger Hallam pointed out that short-term demand has increased Government Debt This could prompt the Treasury Department to issue more fiscal bills, thereby alleviating current market tensions regarding future bond issuances.
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