U.S. Senate's Stablecoin Bill Poised to Reshape Market, Curb Tether's Dominance

The proposed Lummis-Gillibrand Payment Stablecoin Act aims to clarify regulations, potentially boosting U.S. banks' involvement while restricting non-U.S. entities like Tether.

• The Lummis-Gillibrand Payment Stablecoin Act introduced last week could significantly influence the stablecoin landscape by encouraging U.S. banks to participate and potentially reducing the dominance of Tether.
• Tether, issued by a non-U.S. entity, faces potential restrictions under the new bill, which could decrease its market presence in the U.S.
• The bill mandates stablecoin issuers to maintain one-to-one cash or cash-equivalent reserves, aiming to enhance market stability.
• Emergence of new digital asset custody providers could increase competition following the bill's approval, promoting a more diversified stablecoin market.
• The number of stablecoin users has surged to nearly 100 million, highlighting the growing importance of regulatory clarity in this sector.

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