Payment Stablecoin Bill: Threat to Tether's Dominance
Date: 2024-04-29 Author: Oliver Abernathy Categories: BUSINESS
S&P experts have suggested that the stablecoin payments bill introduced by Senators Kirsten Gillibrand and Cynthia Lummis could significantly change the landscape of the local digital asset market and undermine Tether's dominance.
Restrictions for non-financial companies
Under the bill, the "authorized stablecoin" category would only apply to digital assets issued by U.S. entities and would limit the issuance of stablecoins to non-financial companies without a banking license.
Implications for Tether
Subject to the approval of the bill and the introduction of appropriate banking regulation, the new rules could give American banks a competitive advantage by limiting the maximum volume of stablecoin issuance for companies without a banking license to $10 billion, Standard & Poor’s notes.
The stablecoin payments bill introduced in Congress on April 17 is currently under consideration.
