The Senate is preparing for a final vote on Tuesday on a bill which would establish the first federal framework for the cryptocurrencies supported by a dollar known as Stablecoins, a major victory for an industry that has been pressure for more favorable monitoring in Washington, DC
Although the adoption of the law on engineering in the upper chamber does not yet make the new law on legislation – it still needs approval of the Chamber and President Trump – the world of cryptography already praises the rapid progress of the bill as a major stage.
“I feel really good with (this bill),” said Dante Départe, director of strategy and head of the Circle (CRCL) Global Operations (CRCL).
Circle’s shares have climbed approximately 400% since its first day of negotiation on June 5, a sign of the growing enthusiasm of investors for stablecoins as the legislation progresses in the congress.
“I think that with the act of genius, we actually have the right thing,” said disappeared. “You have each issuer if a bank, a cashier or a non-banque would have a common regulatory floor in which he would operate.”
The Act on Engineering – which means “guide and establish national innovation for American stalls” – establishes a framework on how American companies can issue and manage dollars supported for payments.
He prohibits members of the Congress and their families to gain profits from Stablecoins but not from President Trump and his family, an omission which has annoyed certain Democrats and slowed down the progress of this spring legislation.
Trump deepens his own financial involvement in stablescoins as legislation is progressing. World Liberty Financial, a new crypto startup supported by President Trump and his sons, launched his own stablecoin in American Pius (USD1) in partnership with Bitgo.
If the legislation erases the chamber, it should trigger a wave of new participants in stables, because traditional companies ranging from giant lenders to the mega retailers are already considering delivering their own documents.
“We are working with the industry, working individually,” Bank of America (BAC) CEO, Brian Moynihan said last week about Bofa’s hopes for a conference by Morgan Stanley.
Earlier this month, Bank of America and other large banks have summoned themselves to explore the prospects for the launch of a collaborative network of Stablecoin. The Wall Street Journal also reported last week that Amazon (AMZN) and Walmart (WMT) also explored Stablecoin opportunities.
Brian Moynihan, President and CEO of Bank of America. Reuters / Brendan McDermid / Photo file ·Reuters / Reuters
The new wave of competition could upset the traditional payment system, especially if traders seek to circumvent conventional networks based on maps such as Visa (V) and Mastercard (MA).
“Although we are continuously exploring new payment technologies in efforts to support our customers, we do not pilot any program and have no plan in place to issue our own stablecoin,” Walmart spokesperson in Yahoo Finance told.
The legislation currently in front of the Senate would allow the Federal Reserve and the Currency Controller’s Office (OCC) to supervise stable issuers who hold $ 10 billion or more active while small transmitters would be noted from state regulators.
All transmitters would be required to keep cash or American reserves, undergo regular audits and publicly disclose their assets and their buy -back processes.
Like the money market funds, tokens must aim to be exchangeable at their nominal value. But unlike the money market funds, the stablescoins under this bill cannot pay interest.
The stablecoins are presented by their supporters as a paradise for the wild volatility of crypto and a safer place for traders to store their gains because they can be fixed to non -crypto assets like the dollar.
Their settlement and almost instantaneous programmability also have advantages that supporters believe that cross -border transactions could improve and wider access to the US dollar.
“In order to be able to give the US dollar in a way when he comes from legal clarity on the Internet, there is no substitute for this,” said Circle’s disappears.
But detractors are still concerns that there could be risks with stablescoins, including the possibility of panic among investors.
Circle’s disaster indicates that the bill will 100% protect financial stability, citing criminal sanctions if you do not report transparently and submit to an audit or an examination or a certificate of your reserves.
Consumer protection problems, he added, are resolved “from start to finish” in this bill.
Senator Elizabeth Warren, D-MASS. (AP photo / Jose Luis Magana) ·Associated Press
Some Democrats, including senator Elizabeth Warren, have expressed their concerns that the bill authorizes giant technological societies such as Amazon or Meta to launch their own stablecoins.
But Départe noted that the bill stipulates that any technological enterprise wishing to issue a stablecoin should go through a special committee in the Treasury Department to obtain approval.
The head of this department, the secretary of the Treasury Scott Bessent, has great hopes for what this legislation could mean.
He told legislators last week that legislation could help push the American Stablescoin market beyond $ 2 billions by the end of 2028. The world market for stablecoin is currently around 250 billion dollars, according to the Data provider Defillama.
If the bill adopts the Senate, there may be an effort to the House to attach it to a broader bill offering a more radical regulation of all cryptographic assets.
And that can complicate things. Trump said he wanted to sign stable legislation before the Congress leaves for his August recess.
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