Just as lawmakers haveh the federal framework stablecoins In the US, the crypto industry corner could soon face competition from Uber and Meta.
Senate Banking Committee Chairman Tim Scott (R-SC) I swear This month, a stubcoin bill called the Genius Act will be passed in both houses of Congress and will be signed into law within the first 100 days of President Donald Trump’s administration.
As the bill gains momentum, some experts say the industry may reach a crossroads. The measure will provide the first path to legality for stable giants like Tethers and Circles, but it could also unleash massive competition.
According to Niklas Kunkel, founder of blockchain Oracle Builder Chronicle Labs, the federal framework involves countless companies to jump into the $233 billion Stablecoin market. At least, he said that many companies will consider the strategic benefits of Stablecoins. Decryption.
“As soon as this law passes, there will be 10,000 companies considering this,” Kunkel said. “We’ll expand it beyond just payment companies and asset issuers. (…) can include high-tech companies: Amazons, Ubers, Metas, Google of the World.”
Among the companies of interest, Kunkel will debut Stablecoin with 1,000 people passing the Stablecoin Act the following year. But instead of adopting existing Stablecoins like Circle’s USDC, Kunkel said companies will be encouraged to release their own equivalents.
“They want their users to use their brand of Stablecoin, as they can make the yield on the underlying reserve,” he explained. “They may even be white signs.”
Kunkel was referring to Pax as an example of a ridiculous stubcoin with a white sign. The company was once published Binance brand stub coin While he was called Busd and played a central role in PayPal’s Stablecoin Foray as the publisher PayPal USD (PYUSD).
Digital assets are fixed at the prices of Fiat currencies such as the US dollar, so the stable ones are often supported by the US Treasury Department, which generates cash reserves and yields. In the fourth quarter of Coinbase, the company disclosed revenue of $224 million from assets backed by USDC.
Thawing iceberg
arport Issued by S&P Global Ratings on Wednesday found that the Genius Act would increase the adoption of stubcoins in the United States.
November, Paxos CEO Charles Cascarilla I wrote it In a letter to Trump and former vice president Kamala Harris (later Democratic presidential candidate), the American opportunity to solidify financial control through stubcoin is “a myriad examples of regulatory overreach.” It has been suppressed up until now by the following.
Companies like BlackRock are issuing tokenized money market funds similar to Stablecoins, but S&P analysts say the lack of regulation and supervision prevents widespread adoption in areas like daily payments. It says there is.
Chronicle Labs is developing networks Oracleallowing the blockchain to connect to an external, real data source. Before starting a Switzerland-based company, Kunkel worked for five years. MakerdaoThe popular lending protocol behind Stablecoin Thailand. (After that, Makerdao rebranded it to Sky and replaced Dai with USDS.)
Kunkel was part of Makerdao’s founding team when the organization was launched in 2017, and at this point it would be possible to build something that would resemble a bank and run solely on Stablecoin Rails. said. The background to regulations needs to be caught up.
“As soon as you get the government involved, everything is slower until it craves,” he said. “The speed at which thawing that iceberg determines how far we are from the future we have to see before this can be achieved.”
When Paypal introduced Stablecoin in 2023, the company was Face Criticism from Rep. Maxine Waters (D-CA), a top Democrat on the House Financial Services Committee.
She said “federal oversight and enforcement of the Stabrecoin business is essential,” and expressed deep concern that the giant had moved before the framework was passed.
Ultimately, according to an analysis by S&P, Stablecoin’s law could further entangle the US financial system, along with Crypto’s vast distributed finances, or Defi, Landscape.
“In our view, the role of stubcoins continues to evolve and ultimately leads to more integration between traditional finance and decentralized finance,” they write.
Edited by James Rubin
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