- JP Morgan analyzed that even if the stablecoin legislation is passed, rapid market growth will be limited.
- The legislation prohibits the payment of interest on stablecoins and focuses on their use as a means of payment, potentially hindering market expansion.
- Income-generating stablecoins are expected to continue growing with less regulatory impact.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
JP Morgan, the largest investment bank in the United States, has analyzed that even if the stablecoin legislation (GENIUS, STABLE) is passed in the US, rapid market growth will be limited in the short term.
According to The Block, a cryptocurrency media outlet, on the 22nd (local time), JP Morgan analysts stated, "Both the GENIUS and STABLE bills prohibit the payment of interest on stablecoins and focus on their use as a means of payment," and evaluated that "this structure could weaken competitiveness compared to traditional financial products like money market funds, potentially hindering market expansion."
They also added, "Algorithm-based or crypto-collateralized stablecoins like DAI could be completely banned if the legislation is passed."
On the other hand, income-generating stablecoins such as BlackRock's tokenized treasury product BUIDL and Figure Markets' security yield token YLDS are expected to continue growing with less regulatory impact.
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