CandleFocus

U.S. Stablecoin Adoption Is Being Hindered by a Lack of Regulation, S&P Says

Author: Content Editor
U.S. Stablecoin Adoption Is Being Hindered by a Lack of Regulation, S&P Says
The lack of stablecoin regulation in the U.S. is hindering adoption and preventing broader institutional adoption, according to a report by S&P Global Ratings. The report states that once regulations are in place, adoption is expected to grow. Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. New regulations are forthcoming, with the Senate's GENIUS Act calling for federal regulation for stablecoins with a market cap over $10 billion and the House of Representatives' STABLE Act calling for state regulation. The report suggests that the industry landscape could change as users transition from unregulated to regulated stablecoins. JPMorgan has also stated that Tether, the market leader in stablecoins, could face challenges from proposed U.S. regulations.

Related News