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Stablecoin Bill Threatens Tether’s Dominance, Says JPMorgan
A recent report by JPMorgan, as covered by CoinDesk, suggests that the stablecoin bill is likely to be approved before the upcoming presidential election. This bill poses a significant threat to Tether’s dominance in the cryptocurrency market.
Furthermore, the Federal Reserve’s plans to issue a central bank digital currency (CBDC) have been hindered by a House bill that prohibits the central bank from doing so, according to the same report.
Softening Jobs Market Could Benefit Crypto Regulations
JPMorgan’s report on the future of crypto regulations in the U.S. sheds light on the potential impacts of new regulatory measures. Analysts at the investment bank, led by Nikolaos Panigirtzoglou, believe that these measures are at odds with the Federal Reserve’s development of a CBDC.
The report highlights that regulators may show a preference for U.S.-compliant stablecoins, which could diminish the influence of non-compliant stablecoins like Tether, the largest stablecoin in the market.
Stablecoins, which are cryptocurrencies pegged to assets or fiat currencies, have been under regulatory scrutiny due to concerns about their functionality. The proposed stablecoin bill, known as the “Clarity for Payment Stablecoins Act,” could be passed before the 2024 presidential election, potentially reshaping the crypto landscape.
Additionally, the report mentions that U.S. banks might be discouraged from entering the cryptocurrency space, aligning with regulatory efforts to promote compliance within the industry.
Despite these insights, JP Morgan has yet to provide a response to requests for comment on the analysis.
Last month, the House of Representatives approved the Financial Innovation and Technology for the 21st Century Act (FIT21), a crucial step that now requires Senate and presidential approval. However, it is unlikely to be finalized before the election, according to JPMorgan.
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