The absence of stablecoin regulation in the U.S. is one of the main hurdles to adoption, S&P Global Ratings said in a Wednesday report.
“The lack of regulation is one of the main impediments to stablecoin adoption in the U.S. and has prevented a broader institutional adoption of stablecoins,” analysts led by Mohamed Damak wrote.
S&P said it expects adoption to grow once regulation is in place.
Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets and are also used for to transfer money internationally.
New rules are coming. The Senate’s Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act mandates federal regulation for stablecoins with a market cap of over $10 billion with the potential for state regulation if it aligns with federal rules. The House of Representatives STABLE Act calls for state regulation without…
