Last week, Maxine Waters, the Ranking Democrat on the House Financial Services Committee, announced a deal with Committee Chairman Patrick McHenry regarding stablecoin rules. The agreement outlines several key points.
Firstly, the use of U.S. dollar-pegged coins could potentially strengthen the global dominance of the USD by allowing more investors access to the popular greenback currency. Additionally, passing legislation could potentially drive increased demand for U.S. Treasuries.
The proposed legislation holds significant importance, as it is positioned to be the inaugural comprehensive crypto legislation ever passed by Congress. If adopted, it would pave the way for major banks, such as JPMorgan Chase, to enter the crypto space, potentially transforming them from adversaries to allies in certain aspects of the crypto/DeFi ecosystem.
Furthermore, the new rules could introduce millions of people and corporations to the speed, low costs, and convenience offered by crypto wallets, stablecoins, and blockchain-based payment rails, remarks Matt Hougan, Bitwise CIO.
