"White House, Political Parties, and Regulatory Bodies Building Momentum for Stablecoin Regulation Passage"

JH Kim

Summary

Bernstein's report indicated that U.S. political and regulatory stakeholders are forming a perfect storm for passing stablecoin legislation.
The report stated that cooperation between the White House, Republican Party, SEC, and CFTC provides strong momentum for passing stablecoin regulation.
Potential U.S. legislation related to stablecoins will promote business integration with major financial institutions and strengthen bank oversight of crypto companies.

According to The Block, a cryptocurrency-focused media outlet, on the 19th (local time), Bernstein, a Wall Street-based research and brokerage firm, stated in a recent report that "a perfect storm is forming among political and regulatory stakeholders," describing it as "ideal conditions for U.S. stablecoin legislation this year."

The report analyzed that "a perfect situation is developing through the combination of White House support, Republican control of both chambers, and backing from regulatory bodies like the SEC and CFTC," adding that "strong momentum is building for the passage of stablecoin regulation this year."

Furthermore, it projected that "potential U.S. legislation could encourage major financial institutions to integrate stablecoin issuance and payment business models," and "if regulatory oversight of banks' practice of closing accounts for cryptocurrency firms intensifies, the adoption of traditional financial systems by stablecoin issuers, exchanges, and intermediaries will become more active."