US Senate approves law governing Stablecoin; Know who will benefit
Cryptocurrency: Stablecoin is a type of digital currency whose value is linked to real assets like the dollar or gold. This keeps its value stable, and it is considered more reliable for business transactions. The purpose of this law is to create a clear and strong rule for companies issuing stablecoins. Till now, this area was governed by different state and federal laws.
The US Senate voted to move ahead with the Stablecoin law regulating cryptocurrency. 66 senators were in favor and 32 opposed in this procedural vote on Monday. Two weeks ago, it was halted by the Democrats, but today it has been supported after making certain modifications.
Stablecoin is a cryptocurrency whose price is pegged to real assets such as the US dollar or gold. Its price is most often approximately equal to 1 dollar, and it is stable and valuable in transactions versus other cryptocurrencies. With such increasing popularity and risks of this sector, it is felt necessary to put it into a unified central law.
There was also controversy over this law because US President Donald Trump and his family have a direct connection with many crypto projects. Trump recently launched a 'meme coin' which has earned more than $320 million. One of his family companies 'World Liberty Financial' has also launched a stablecoin called USD1, which is now getting big investments from Arab countries.
There was strong opposition from the Democrats initially. Senator Elizabeth Warren said, 'This law will promote Trump's corrupt crypto activities.' However, some Democrats supported the law after adding some strict provisions like strict monitoring of foreign companies, preventing big tech companies like Meta and Google from issuing stablecoins, and rules preventing MPs from issuing crypto.
Now the Senate will hold a final debate and vote on this bill, which may happen this week. If this law is passed, the stablecoin industry in the US will get a strong and transparent legal framework, which will promote consumer protection, economic stability and technological innovation.
Senator Mark Warner said, 'The stablecoin market has now reached $250 billion. America cannot delay any longer. We need clear rules for consumer protection, national interest and responsible innovation.' This law can prove to be a very important turning point for both the crypto industry and American politics.
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