One of the reasons for the decline in the crypto market over the past few months are the apprehensions about stablecoins. Issuers of stablecoins in the US will face bank-like regulations and oversight. A draft bill related to this is being prepared. Senior Democrats and Republicans on the Financial Services Committee are finalizing the draft.
of Reuters Report Accordingly, the bill will include standards such as banks for capital, liquidity and monitoring. This will allow firms outside the banking segment to introduce stablecoins. However, these firms will be barred from launching their own stablecoins. The passage of this bill in Congress is doubtful. However, there is indication of its passage due to the support of senior members of both the parties. A source with knowledge of the matter said that the Senate has not been included in the talks for this. Midterm elections are due in the US in November.
Stablecoins are cryptocurrencies that attempt to link their market price to a reserve asset such as gold or common currencies. These are more commonly used for digital transactions that involve converting virtual assets into real assets. USD Coin, Tether and Binance USD are some of the popular stablecoins, which are pegged to the US Dollar. Stablecoin, a rapidly growing version of crypto, has emerged as a major medium of exchange. It is often used by traders to remit funds.
Chief stablecoins Easy to exchange for bitcoin or other cryptocurrencies. Investors were hit hard by the recent fall in stablecoins. The UK Finance Ministry has decided to put in place a plan to deal with the downside in large stablecoins such as TerraUSD. Tether will launch a stablecoin pegged to the UK currency pound next month. The symbol for this altcoin will be GBPT. It will initially be based on the Ethereum blockchain. Support for other blockchain networks can also be added to this later. Recently Tether expanded the crypto market in Latin America with a new stablecoin. This stablecoin is tied to the Peso of Mexico. It will initially be supported on Ethereum, Tron and Polygon.