Leading financial institutions in the United States are actively negotiating the possibility of jointly issuing a stablecoin. Such giants as JPMorgan, Bank of America, Citigroup and Wells Fargo are participating in the discussion. Other financial institutions, such as the payment system Zelle and the clearing house, have also joined the project.
Legislative regulation
The US Senate took a major step forward in regulating the stablecoin market by voting to advance the discussion of the “Generating Stablecoin Regulation” (GENIUS) Act. This bill is intended to establish a regulatory framework for stablecoins and ensure compliance with anti-money laundering laws. Democrats plan to make changes that will prohibit Trump and other officials from profiting from stablecoins.
Growing demand for stablecoins
Interest in stablecoins continues to grow. National governments and institutions are actively implementing them in their practices. The total market cap of stablecoins has reached a massive $245 billion, up 20% from the start of the year. Moreover, yield-generating stablecoins account for nearly 4.5% of the $11 billion market.
Impact on the banking model
The US banking lobby is concerned about the potential disruption of the traditional banking business model by stablecoins. However, tech giant Meta continues to explore ways to integrate stablecoin payments into its platforms.
The financial world is watching this development as a concerted effort by major banks and legislative initiatives could significantly change the cryptocurrency landscape in the US.
