The STABLE Act -- U.S. Legislators Take Aim at Stablecoins

The STABLE Act -- U.S. Legislators Take Aim at Stablecoins

  • December 2020 •
  • 5 pages •
  • Report ID: 6001510 •
  • Format: PDF
This IDC Market Perspective looks at the recently submitted STABLE Act, a bill introduced into the U. S. Congress. The bill represents an attempt by U.S. legislators to control growth of stablecoins -- currency tokens with a value pegged to a basket of securities or currencies. While the bill is unlikely to gain much traction during this legislative session, it represents the evolution of thinking by some lawmakers regarding private enterprises issuing their own currency. That thinking sees stablecoins as bad for consumers as well as for the financial services market more generally. The industry's response to this bill will go a long way toward determining how stablecoins, as well as other token types, will be treated at this important stage of their evolution. That could have larger implications for related technologies such as blockchain and distributed ledgers."The positive signs from some regulatory bodies in the past few months were very encouraging," said James Wester, research director, Worldwide Blockchain Strategies at IDC. "But the introduction of the STABLE Act shows that many lawmakers still view cryptocurrencies, stablecoins, and digital assets with some suspicion. How advocates for blockchain, cryptocurrencies, and digital assets address these suspicions could be very important in ensuring regulations do not hamper the technologies' development."
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