The U.S. government is focusing on regulating stablecoins rather than establishing a Strategic Bitcoin reserve. A bill has been introduced to regulate USD-pegged stablecoins, with the aim of bolstering the position of the American dollar as the world's reserve currency and promoting financial inclusion. Another bipartisan bill has also been introduced to regulate stablecoins with a market cap exceeding $10 billion. These regulations will impact Tether, the largest stablecoin issuer, and JPMorgan analysts believe Tether may need to sell Bitcoin holdings to meet the new requirements. The bills aim to provide safe opportunities for U.S. citizens and companies and maintain the dominance of the American dollar in the crypto race era. The growing momentum of stablecoins is highlighted, as they facilitate wider exposure of the USD value across the world, increasing international demand for the American dollar and benefiting the U.S. position in the global economy. However, there are concerns about potential flaws in the regulatory framework. The regulations come at a time when stablecoins are on the rise, with examples from Ripple and MasterCard. Ripple has launched its stablecoin RLUSD, which has reached a market cap of $100 million, and MasterCard has acknowledged the potential of stablecoins to disrupt traditional finance.



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