In this article I will discuss the upcoming stablecoin regulations by the US government. I will talk about expected dates and what they potentially mean for the crypto space. Keep in mind that this article is not financial advise but only for entertainment purposes only.
Regulations for stablecoins
US keeps to make unfriendly news for crypto. Latest is to regulate stable coin issuers like banks. This is something that was on the horizon for quite some time. The US issued stable coins like Circle will probably have no problem to comply. On the other hand, companies like Tether will experience major issues. This would result in a delisting of USDT on all US-based crypto exchanges.
To be perfectly honest: These regulations might not be the worst that could happen to the crypto market. It all depends on the details of these regulations which have yet to be released. All that is known so far is that there should be a bank like network in which the issuers have to operate. For more details we probably have to wait until the end of October. By this time a concrete proposition will be released by the US government. What is interesting about this is that it seems like politicians will make the regulations and not regulators. This is good news for the crypto community since a lot of US politicians seem to be more pro crypto than opposed to it.
A first this would seem like bad news, since regulations in crypto are considered a bad think. On the other hand this would close down some shady operations like Tether is doing. I am vey open to regulations in the stable coin area since this is the base for almost all of crypto. To have a safe base would provide a very stable and bright future for crypto. Furthermore, it would push the crypto scene more towards the mainstream which would imply a higher institutional investment and potential more exciting crypto projects. Additionally, current projects can grow bigger and generate more value. All in all it depends on the detailed regulations but it seems like they will not be as bad as expected.
Published by ga38jem on Publish0x on 8th October 2021
Published by ga38jem on Leofinance on 8th October 2021