Moody's: "Issuing Stablecoins in Large Quantities Will Remain Difficult Even If the Regulatory Bill Passes"
Summary
- Moody's lead analyst assessed that the likelihood of mass issuance of new stablecoins is low, even if the stablecoin regulatory bill passes.
- Contrary to some outlooks, he noted that the bill is unlikely to prompt the large-scale debut of new stablecoins capable of threatening incumbents such as Tether (USDT) and Circle (USDC).
- He explained that, despite the passage of the bill, substantial regulatory hurdles, procedures, and the challenge of developing a sustainable business model may impact investments.
On the 27th (local time), Cristiano Ventricelli, the Global Head Digital Asset Analyst at Moody's, stated in an interview with Decrypt that "Even if the stablecoin regulatory bill is passed in the United States, the possibility that thousands of new stablecoins will flood the market is low."
He said, "Some predict that the establishment of the regulatory bill will lead to the emergence of new stablecoins on a large scale, which could threaten established leaders such as Tether (USDT) and Circle (USDC)," and pointed out, "However, this is somewhat exaggerated."
Ventricelli further emphasized, "Even if the bill is passed, there remain significant regulatory hurdles and procedures before stablecoins can be issued," adding, "Building a sustainable business model goes far beyond simple issuance and is a challenge of an entirely different order."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
