The crypto community has been debating a lot about the introduction of a new bill in the United States which aims to regulate stablecoins in the country. Ryan Berckmans, a community member Ethereum and investor, shared an interesting analysis of the bill, highlighting that it is “extremely optimistic” for the second largest cryptocurrency on the market.
In a recent post, Berckmans highlighted that he is not a lawyer or regulatory expert, but he believes in the benefits of regulation for ETH. “My initial reading is that the bill is extremely optimistic and legitimizes Ethereum.”
“Ethereum gains a lot – assets not pegged to US dollars gain (on-chain euros, gold, etc.) – assets pegged to US dollars tightly controlled”, he added.
In his analysis, Berckmans separated some points that he considers good and bad about the project. Good: widely legitimizes stablecoins on public networks in America; Opens floodgates for US banks to obtain stablecoin licenses and for certain private companies (like Fidelity) to issue up to $10 billion in unlicensed stablecoin; It does not regulate assets that are not indexed to the US dollar.
Furthermore, Berckmans highlighted the following as bad points: prohibits the issuance of unlicensed stablecoins pegged to the US dollar to US residents; The bill's definition of “algorithmic payment stablecoin” is overly broad and appears to apply to virtually any decentralized stablecoin that uses an algorithm to adjust supply to maintain peg.
🚨New stablecoin bill draft🚨
My initial read is that the bill is extremely bullish and legitimizes Ethereum.
Disclaimer: I'm not a lawyer or regulatory expert. I read through chunks of the new bill[1] and analyzed it with GPT4. Analyze it yourself[2]
TL; DR
– Ethereum wins big…— Ryan Berckmans ryanb.eth (@ryanberckmans) April 17, 2024
US Lawmakers Committed to Passing Crypto Regulations Ahead of Elections
In the political scene in the United States, a wave of optimism takes over the corridors of power as the November elections approach. Prominent lawmakers such as Congressman Patrick McHenry and Senator Cynthia Lummis recently expressed their views during an event hosted by Coinbase. positive expectations regarding the approval of impactful legislation in the world of cryptocurrencies later this year.
Patrick McHenry points to two legislative proposals of particular importance: the Keep Innovation in America Act and the Clarity for Payment Stablecoins Act. While the first aims at reforms in the cryptocurrency market, the second seeks to regulate stablecoins, an initiative previously supported by the Biden administration through an executive order.
