Proposed Stablecoin Bill May Impact Tether And Banks

According to a report from S&P Global Ratings, the introduction of the Lummis-Gillibrand Payment Stablecoin Act on April 17, 2024, promises to significantly reshape the U.S. stablecoin market. Authored by Mohamed Damak and Andrew O'Neill, the report outlines the potential for enhanced regulatory clarity and increased institutional adoption.

The Lummis-GillibrandPayment Stablecoin Act introduced to the Senate could see big banks encouraged to take steps into the stablecoin market, says S&P Global Ratings.

According to an S&P report, a bipartisan stablecoin bill may give banks an advantage over other institutions and incentivize competition in the digital asset custody business.

The latest stablecoin bill, if passed, could embolden banks to step into the stablecoin market, according to S&P Global Ratings.

Senators Kirsten Gillibrand and Cynthia Lummis are spearheading a significant legislative effort aimed at refining the regulation of stablecoins, a type of cryptocurrency pegged to stable assets like the U.S. dollar.

Last week, U.S. Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.