You can feel like each week there is a new stablecoin ad from a traditional financial actor.
The only thing they all have in common? For the most part, they do not take place in the United States
But, while American legislators circulate a project of content updated on the law on engineering, acronym to guide and establish national innovation for American stables of the law of 2025, which could be about to change because of the potential emergence of national regulatory clarity around stalins supported by a dollar.
However, negotiations are underway while the genius law seeks to go to a ground vote. The previously Bipartite bill has, during last week, generated a partisan debate and lost its momentum due to the reaction against the involvement of President Donald Trump in digital asset companies.
The Senate Democrats now warn that the Bill, as originally written, could inadvertently open valves to corruption, foreign threats and a new era of non -regulated digital financing.
Democratic legislators request that changes be made to consumer protection, bankruptcy and ethics, as well as “robust financial checks” for private stabbing issuers, such as technological companies. Meta, for example, would consider adopting stablecoins as a means of making cross -border payments.
In the end, if the law on engineering becomes the law and, in what form, could redefine the future of finance in America. The regulatory framework offers the promise of clarity and the peril of gaps, as well as the challenge of reconciling innovation with surveillance.
Republican legislators hope that the revised engineering law will be approved by the Memorial Day at the end of the month.
See also: Sandwiches at the shirt? Here is what CFOs should know about the crypto jargon
The paradox of “stability” in crypto
Stablecoins are marketed as digital agents with a predictable value, generally set to fiduciary currencies such as the US dollar. The objective is to fill the gap between the volatility of traditional cryptocurrencies such as bitcoin and the reliability of the money supported by the government. However, despite the promise of “stability”, reality was anything but.
Several Stablecoins have experienced dramatic departments that have sent shock waves in the digital economy. In 2022, Terrausd (UST) collapsed, destroying more than $ 40 billion in market value and triggering a domino effect which destabilized the wider cryptographic ecosystem. The implosion has highlighted a disturbing truth: not all stablecoins are created equal, and not all are supported by real reserves.
However, there is generalized recognition in Washington that stablecoins are too important to ignore. With more than $ 230 billion in circulation and growing integration into global payment systems, these digital tokens quickly become the cornerstone of modern finance. Political decision -makers are faced with a double challenge to promote innovation while protecting consumers and national security.
After all, Crypto has a little more “Wild West” to its operations than traditional and traditional protections, as the recent data violation and the extortion attempt suffered by Coinbase, an American company listed on the stock market, point out. The pirates managed to obtain the names, addresses, telephone numbers and e-mails of these users, as well as the last four figures of their social security numbers.
The news occurred for weeks after the FBI has published an increase in cryptocurrency fraud, with at least $ 9.3 billion in losses reported last year, a jump of 66% compared to 2023. These losses come from investment, extortion, sextrusion and fraudulent activity involving ATM and cryptocurrency.
Read: Why central banks manage monetary policy tools for blockchain
The revisions take the front of the scene for the genius
At the heart of democratic amendments are provisions that strengthen federal consumer and states protection laws. The bill updated on the law on engineering explicitly guarantees that the existing laws applied by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) remain applicable to stabbing issuers and prevent the new regulatory regime from becoming an escape for the laws on the avoided securities.
Emitters will also be faced with strict prohibitions on promoting performance or interest characteristics – a decision designed to curb the risks similar to those that have triggered the collapses in the cryptography loan space. In addition, denomination restrictions will prevent companies from using terms such as “United States” or “USG” in the product brand, which reduces the risk of deceiving consumers on government support.
Emitters located in countries under complete American sanctions – or considered as risks of money laundering – are prohibited from operating on the American market, close the potential deposits for illegal funding.
Democrats have also obtained difficult restrictions on non -financial companies listed on the stock market – namely technology giants like Meta Plapattings Inc. and Amazon.com Inc. – to deliver their own stablecoins unless they comply with rigorous standards. The language aims to preserve the separation between trade and the bank, a long -standing policy pillar which, according to criticism, could be compromised by digital assets.
