The lack of stubcoin restrictions in the US is one of the main hurdles for adoption, S&P Global Ratings said in a report Wednesday.
“The lack of regulation is one of the main obstacles to stable adoption in the US and prevents the wider institutional adoption of stubcoin,” wrote an analyst led by Mohamed Damac.
S&P said it hopes recruitment will grow once regulations are in place.
Stablecoins are cryptocurrencies that have value in other assets, such as US dollars and gold. They play a major role in the cryptocurrency market and are also used to transfer money internationally.
New rules are coming. The US National Innovation Guidelines and established US National Innovation (Genius) Act, if consistent with federal regulations, is a market capitalization of more than $10 billion in market capitalization with the possibility of state regulation, and is a stubcoin. It requires federal regulations. The House calls for stable laws to regulate states without conditions.
Some users are expected to move from unregulated to regulated stubcoins once the framework is in place, according to the report, which could change the industry’s landscape .
“Stubrecoin will play an increasingly important role in transactions on the chain,” the author writes, protecting user savings from “regional financial instability in emerging markets” or receiving payments.
Wall Street Bank JPMorgan (JPM) said in a report last week that Tether, which issues the market leader USDT, could face challenges from the proposed US stubcoin regulations.
Read more: Tether may need to sell some bitcoin to comply with us stablecoin rules: jpmorgan
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