U.S. New Stablecoin Law Could Deal a Blow to Tether Reign! - Coin Newsletter

Tether, the world's largest stablecoin issuer, may lose its throne with a new law from the United States.

Tether, which has dominated the cryptocurrency market for a long time, faced US risk. Experts, who think that the "Lummis-Gillibrand Payment Stablecoin Law", which the US plans to implement soon, may put Tether's USDT in a difficult situation, said that with this law, giant banks can enter the stablecoin sector.

Rating agency S&P Global Ratings noted that if the law in question is implemented, banks will be more emboldened and get into the stablecoin business, which will put a strain on Tether, which has already been at the center of controversy from the beginning:

Approval of the stablecoin bill will accelerate institutional blockchain innovation, especially for tokenization or digital bond issuances involving on-chain payments. The growth of institutional use cases for stablecoins will create opportunities for banks as issuers of stablecoin and will also undermine Tether's dominance in the global stablecoin market.

S&P Global Ratings stated that if the new bill is passed by the parliament, institutions that do not have a banking license will be able to issue stablecoin of up to $ 10 billion, emphasizing that this will give banks a chance to compete against Tether.

Tether still dominates the stablecoin market in the world with a market cap of $110 billion.