“An approval of the stablecoin invoice would speed up institutional blockchain innovation, specifically for tokenization or digital bond issuances involving on-chain funds,” O’Neill mentioned, including that the “progress of institutional use instances for stablecoins would create alternatives for banks as stablecoin issuers and can also cut back tether’s dominance within the world stablecoin market.”
S&P mentioned that USDT is issued by a non-U.S. entity and subsequently just isn’t a permitted cost stablecoin below the proposed invoice. Which means that U.S. entities cannot maintain or transact in it, which might cut back USDT’s demand whereas on the identical time giving a lift to U.S.-issued stablecoins. Nonetheless, USDT transaction exercise is positioned primarily outdoors the U.S. in rising markets and is pushed by retail traders and remittances, the report famous.
