The adoption of a bill on payment stablecoins in the United States may surpass the significance of the approval of spot Bitcoin ETFs. This was stated by Bitwise CIO Matt Hougan, reports The Block.
The expert noted the increased chances of the bill’s passage following statements from Maxine Waters, a member of the House Financial Services Committee. She mentioned close collaboration on this issue with Chairman Patrick McHenry.
According to Hougan, bipartisan interest in the payment stablecoin bill is driven by three factors:
- Such tokens could help the US dollar maintain its status as the world’s reserve currency.
- Stablecoin issuers are effectively the 16th largest holders of US Treasury securities.
- Vast financial opportunities.
In the latter case, the expert highlighted Tether’s achievements. By the end of 2023, the company recorded a net profit of $6.3 billion compared to Goldman Sachs’ $8.5 billion, with a workforce of 125 employees versus the investment bank’s 45,000.
“Make no mistake: Wall Street is lobbying for its role in the stablecoin game,” said Hougan.
According to the Bitwise CIO, the law would allow banks like JPMorgan to enter the stablecoin market and transform from “foes to friends” in certain parts of the cryptocurrency ecosystem.
“Millions of people and corporations will be introduced to the high speed, low cost, and ease of use offered by wallets, stablecoins, and blockchain-based payment channels,” the expert noted.
According to The Block, the capitalization of stablecoins has increased by 23% since the beginning of the year, reaching $181 billion.
Back in S&P, it was concluded that US Congressional initiatives could weaken Tether’s position.
Earlier, Bernstein analysts predicted that the market value of stablecoins would grow to $2.8 trillion over the next five years.