Nevertheless, according to S&P experts, Tether’s local digital asset market dominance could be challenged by Senators Kirsten Gillibrand and Cynthia Lummis’s bill on payment stablecoins.
The bill restricts the amount of stablecoins that non-bank financial companies can issue by stating that they can only be issued by American legal entities.
“If the bill is passed and banking regulation starts, the new rules could give U.S. banks an edge by capping the issuance of companies without a banking license at $10 billion,” Standard & Poor’s stated.
Kirsten Gillibrand and Cynthia Lummis introduced the stablecoin payments bill, which was introduced on April 17 and entered Congress.