BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

Banks could flood into stablecoin market if new payment act passes Senate

by Drop Gorn
April 25, 2024
in CRYPTO
Reading Time: 3 mins read
A A
1
SHARES
17
VIEWS
Share on XShare in TelegramShare on Reddit
  • The Lummis-Gillibrand Payment Stablecoin Act could encourage U.S. banks to issue stablecoins by imposing a $10 billion issuance limit on non-bank stablecoin firms.
  • The proposed bill aims to ban unbacked algorithmic stablecoins and require stablecoin issuers to hold one-to-one cash or cash-equivalent reserves.
  • The $10 billion issuance cap on non-bank firms could spell trouble for Tether, currently the largest U.S. Dollar-pegged stablecoin issuer with a market cap of $110 billion.

The introduction of the Lummis-Gillibrand Payment Stablecoin Act to the U.S. Senate could encourage banks to issue stablecoins and gain a competitive edge in the emerging market, according to a note from S&P Global Ratings.

Bill proposes limits on non-bank stablecoin issuers

The proposed bill would place a $10 billion cap on stablecoin issuance for non-bank entities. It would also ban unbacked algorithmic stablecoins and require 1:1 reserves for stablecoin issuers.

These new rules could limit non-bank entities while giving banks a competitive advantage in stablecoin issuance. The $10 billion cap in particular may pose challenges for major non-US stablecoin issuers like Tether, which has a market cap over $100 billion.

Tether issuance could face hurdles under new rules

As Tether is issued by a non-US entity, it would not qualify as a permitted stablecoin under the bill. This may reduce demand for Tether while boosting US-issued stablecoins.

Much of Tether’s activity occurs outside the US, driven by emerging markets, retail activity, and remittances. New US rules may shift stablecoin dominance towards US-based issuers.

Stablecoin regulation aims to maintain dollar dominance

Senator Kirsten Gillibrand said passing a stablecoin framework is critical for maintaining the dominance of the US dollar and promoting responsible innovation.

However, some industry groups argue the bill’s limits on algorithmic stablecoins raise free speech concerns. The path forward remains uncertain as lawmakers balance innovation with regulation.

Conclusion

The proposed stablecoin bill signals greater regulatory oversight of cryptocurrencies. If passed, it could spur major US banks to enter the market while restricting non-US players. This shift could have broad impacts on stablecoin adoption and design worldwide.

Tags: S&P Global RatingSenator Kristen GillibrandStablecointether
TweetShareShare
Previous Post

Meta’s Virtual Reality Division Took a Major $3.85 Billion Loss in Q1

Next Post

Crypto Market Rattled by Arrest of Samourai Wallet Founders

DON'T MISS THESE! HOT OFF THE PRESS

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth
CRYPTO

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance
CRYPTO

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing
CRYPTO

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself
CRYPTO

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape
CARDANO

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish
BITCOIN

$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish

July 18, 2025
Load More

Related News

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin US Web3 X xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.