As the U.S. lawmakers prepare to establish a federal framework for stablecoins, experts believe it may lead to substantial competition in the stablecoin market, currently valued at $233 billion. Niklas Kunkel, founder of Chronicle Labs, anticipates that once the GENIUS Act passes, thousands of companies will explore joining the stablecoin sector. This legislation aims to provide regulatory clarity for established players like Tether and USDC, while potentially attracting new entrants, including larger corporations such as Uber and Meta. A report from S&P Global Ratings indicates that regulatory clarity could enhance stablecoin adoption in the U.S., which has been hindered by regulatory uncertainty. Historical examples from Paxos CEO and lawmakers reflect concerns about the government's oversight of new stablecoin initiatives. If successful, this legislation could integrate traditional finance with decentralized finance in ways not previously realized, signifying a pivotal shift in the cryptocurrency landscape.

Source 🔗