Stablecoins are at risk in the US
Hasib Qureshi, Managing Partner of Dragonfly Capital, Says New Legislation Will Be a Serious Hindrance to the Development of the Stablecoin Market
The law on obtaining a banking license by stablecoin issuers will serve as a constraint on the development of the cryptocurrency market. If adopted, it would force stablecoins to be regulated in the same way as bank deposits.
The corresponding bill was prepared in the United States in early December. If accepted, any stablecoin issuer will be required to:
- comply with banking rules
- be authorized by the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC)
- get confirmation that stablecoins can be converted to dollars
Hasib Qureshi says stablecoins are in a lot of trouble, and in vain. Despite the fact that the same Tether (USDT) is not fully backed by dollars, it is actively used and popular.
Its supply has grown over time, and it's no surprise that many organizations like the US Department of Justice and the Commodity Futures Trading Commission (CFTC) are paying close attention to it.