Proposed US stablecoin regulations: Circle may be ahead of Tether

US Senator Cynthia Lummis (Republican, Wyoming) has attracted widespread attention for her latest proposal for stablecoin regulations. Under the proposal, Circle Internet Financial, a US company, would have an easier time complying with the new stablecoin regulations than Tether, the global stablecoin leader. According to Lummis, US customers are more likely to choose stablecoin issuers that are regulated in the US. The bill would require stablecoin issuers to comply with a bank-like regulatory regime, while businesses that issue tokens over $10 billion would be required to become regulated depository institutions. While current stablecoin leaders such as Circle would also face significant regulatory hurdles, Lummis expressed willingness to adjust the bill based on feedback from industry and government. Although cryptocurrency legislation still faces many challenges in this Congress, some lawmakers have expressed optimism and are willing to discuss topics such as stablecoins. The head of the House Financial Services Committee has met with the Senate majority leader to advance cryptocurrency legislation, but it is unclear how the negotiations are progressing. Industry insiders are closely monitoring the legislation, but remain cautious about its potential impact and requirements.