Stablecoins, cryptocurrencies pegged to assets like the U.S. dollar, are facing a significant adoption challenge in the U.S. due to the lack of regulation, according to S&P Global Ratings. Analysts led by Mohamed Damak highlight that this regulatory void is a primary barrier to broader institutional acceptance. However, with new regulations on the horizon, such as the Senate’s GENIUS Act and the House’s STABLE Act, the landscape is expected to change. The GENIUS Act mandates federal oversight for stablecoins with a market cap exceeding $10 billion, while the STABLE Act advocates for state regulation. S&P predicts that once these regulations are implemented, approximately 70% of users might transition from unregulated to regulated stablecoins, reshaping the industry. Stablecoins are crucial for on-chain transactions and international money transfers, offering protection against local monetary instability in emerging markets.
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