This latest move by the US Lawmakers can kill Stablecoins but not Bitcoin ???

[globalcitizen]

If you are thinking like me, I guess you would agree with the caption of this post after you must have read the detail of the latest bill being proposed by some United States Lawmakers to regulate all stablecoins by forcing them to obtain banking license and an approval by the Federal Reserve. It's unlikely that you and I will be in complete agreement in that line of thought.

However, I'm of the opinion that the move is likely to kill stablecoins and stifle crypto adoption in the US. But it will not kill Bitcoin. Do you agree? Just go through the release below and express your own view.

[DoubleAweSeven]

That's absurd claim. US doesn't control everything anymore. They doesn't dictate what is going to happen in the whole world just because it happens in the US. Stablecoins will continue to strive just like every cryptocurrency out there. Also, regulation doesn't mean killing it so I don't really know how you come up with that.

[nomenclatur]

If it really affects the price of all stable coins, of course, this will be a big problem if later the stable value will fall and reap the problem because it could be that the value will reach its lowest point which makes the stable coin price worse and investor interest will start to leave what it worth waiting for whether it is stable The coin will fall and make investors switch to other better coins. If there is a significant drop in the near future then it is a warning to investors.

[DoubleAweSeven]

If it really affects the price of all stable coins, of course, this will be a big problem if later the stable value will fall and reap the problem because it could be that the value will reach its lowest point which makes the stable coin price worse and investor interest will start to leave what it worth waiting for whether it is stable The coin will fall and make investors switch to other better coins. If there is a significant drop in the near future then it is a warning to investors.

What the actual F are you saying? You do know that stablecoin prices doesn't really change right? because it's paired with something, like USD, right? Do you actually know what a stablecoin is before commenting?

[X-ray]

That's absurd claim. US doesn't control everything anymore. They doesn't dictate what is going to happen in the whole world just because it happens in the US. Stablecoins will continue to strive just like every cryptocurrency out there. Also, regulation doesn't mean killing it so I don't really know how you come up with that.

It looks like any crypto stable coin will be banning US citizen for this. I do agree if US is not controlling everything but when the stable coins are still being operated in US and it must have followed the US regulation.
I guess there will be  massive ban by exchange sites for US citizen to use the stable coin on the crypto market. We will see that.

[Tash]

Only a matter of time before tether blows the top of. Printing out of control, supply doubled since August

[XCANA]

The US jurisdiction should be affected for this and not the entire world, this regulations will help the US citizens against scam projects and it should be seen as something positive. Its time these exchanges face the wrought of the law anytime they act inappropriately to their customers, stablecoins should be regulated which equally give room for checkmating their activities. This news has actually helped in the recent drop in the price of cryptocurrency but it will do more good than bad, so, it should be appreciated.

[jossiel]

I reckon.

It won't kill bitcoin but they're just trying to regulate the stable coins. That's more of their concern with the printing of any centralized stable coin issuers seems to be alarming for them. Although, they also even print fiat.

If it really affects the price of all stable coins, of course, this will be a big problem if later the stable value will fall and reap the problem because it could be that the value will reach its lowest point which makes the stable coin price worse and investor interest will start to leave what it worth waiting for whether it is stable The coin will fall and make investors switch to other better coins. If there is a significant drop in the near future then it is a warning to investors.

No.

There's no such as investor in stable coins. Most traders and investors are only converting to stable coins for the maintaining value of their assets but it's not literally investment for everyone.

[posi]

I am not shocked by the move of the US lawmakers and if they didn't take this step sooner or later the EU/UK will do because KYC/AML was introduced by the SEC when there's a lot of scams involved in cryptocurrency initial offering and with the issue of Tether lied about their reserves then which the US lawmakers thought another centralized stablecoin company may also do the same thing they have to take a bold step.
I don't see it as a deed to kill Stablecoins but to prevent them from doing something dirty.

[pixie85]

This is stupid. Why does a coin need a banking license if it's not holding fiat money or exchanging fiat money in any way. All the exchanging is done on exchange platforms and if someone is to require any licenses it's them.

Many countries tried such regulations but legislation is long and slow and the bill is going to get changed along the way. I don't think it's going to get approved straight up, if ever.

[articlecity]

Worst case scenario, even if they highly regulate or ban stablecoins still people will be able to use them because they are decentralized and crypto coins are truly borderless and even if exchanges have to ban it for US members even then the rest of the world is a big market and things will continue working as usual, I guess.

[Joe-Bloggs]

Stable coins are actually dangerous.
Centralized stable coins.

Tether could collapse and crush billions.
The only stable or price smoothing coin that is entirely decentralised like Bitbay and ampleforth will be okay they are not hard attached to fiat or hard assets like gold. So no centralized control that can collapse and crush the entire crypto sphere.

I think sadly there are other forces attempting to crush projects like Bitbay.
Stable coins clearly provide even stronger competition to fiat currencies. Since people want to have a consistent price to for things.

Bitbay ( original I believe) ampleforth and a few others offer what I would call price volatility inhibiting mechanisms but some need a level of liquidity and volume to do so successfully.

Read up about these here.


https://www.researchgate.net/publication/344233205_Applications_of_CBDCs_and_private_stablecoins_Comparative_analysis

I don't expect they would allow Stable coins without super strict regs and their tasty angle.

[bitkanu]

Worst case scenario, even if they highly regulate or ban stablecoins still people will be able to use them because they are decentralized and crypto coins are truly borderless and even if exchanges have to ban it for US members even then the rest of the world is a big market and things will continue working as usual, I guess.

that's true and even they will be banning it and the stable coin will still exist. The stable coin must have not operated in US and that will solve it. The banking license is such a crap thing that came from the US.
it looks like the US itself is starting to think stable coin as a big threat for the US bankers. lol

[kindbtc]

If they just want stablecoins to get a banking license and registration at Federal reserve then it is in no way a ban rather I think that all genuine stablecoins will follow it and should not have any problem, Infact this can help in even more adoption of stablecoins.

[maxreish]

They're having a thought that stable coins will be a threat to their fiat money and banks as well that is why they wanted to make regulations to stable coins. However, there is a point doing such as they have stated some reasons like tether issues and connected with the Bitfinex actions before. This worried the federal reserve of the US.
 
 Remember Libra coins not yet launched because it is stable coin and their government wanted to regulate it, too. So if they can make some laws regarding stablecoins, then what's next? They'll gonna do the same thing with the other cryptocurtency in the futute? I hope not.

[asriloni]

If they just want stablecoins to get a banking license and registration at Federal reserve then it is in no way a ban rather I think that all genuine stablecoins will follow it and should not have any problem, Infact this can help in even more adoption of stablecoins.

It looks like the banking license will be used to control the company who already issued the stable coin. We know that tether is always printing more and more money. The problem in the stable coin was the transparence especially for the reserved fund that being used to backed the stable coin itself. There were some cases in the past said that if we can't trust the company who issued the stable coins.
Even tether said that if USDT is not fully backed by fiat money.

[DoublerHunter]

^ The bill is not to kill bitcoin or any cryptocurrency instead it is to have regulation for stablecoins which means that the government will gain control over the coins by subjecting them to the jurisdiction of their local financial institution. Though this is for stablecoins which is apart from bitcoin I am not convinced that once the bill has passed and be implemented they will already be stopped for I supposed that, this is just the beginning or a trial and if the bill will work then they might take another step that bitcoin might be stricken too and the result will either be positive or negative which is almost similar to their action now towards stablecoin.

[Princejebs]

This is one of the reason why I always  believe that we can't do without banks, if stable coin like Usdt need regular audit by providing adequate information of mint stablecoins to individual, investors and traders. They should do the needful and get banking licences, this way I will be able to sleep and having trust in stable coin and not the other  way around.
It's necessary, look at Usdt capitalization, they need to be properly secured to avoid any future uncertainty that will hurt investors especially now that the market is accommodating institutional investors.

[globalcitizen]

They're having a thought that stable coins will be a threat to their fiat money and banks as well that is why they wanted to make regulations to stable coins. However, there is a point doing such as they have stated some reasons like tether issues and connected with the Bitfinex actions before. This worried the federal reserve of the US.
 
 Remember Libra coins not yet launched because it is stable coin and their government wanted to regulate it, too. So if they can make some laws regarding stablecoins, then what's next? They'll gonna do the same thing with the other cryptocurtency in the futute? I hope not.

I reckon with your line of thought.

The truth is that the cryptocurrency innovation has become so intimidating to many national governments and big financial institutions around the world and it's being seen as developing at a very high rate. As a result, some governments and big banks are already strategizing how to launch their own digital currencies and control the existing ones. The privately owned stablecoins are more likely to be impacted negatively if such governments go ahead to launch their coins, and trying to regulating the stablecoin ecosystem seems to be the beginning to what will come later. But I still don't see such actions stifling other cryptos like bitcoin.

[globalcitizen]

They're having a thought that stable coins will be a threat to their fiat money and banks as well that is why they wanted to make regulations to stable coins. However, there is a point doing such as they have stated some reasons like tether issues and connected with the Bitfinex actions before. This worried the federal reserve of the US.
 
 Remember Libra coins not yet launched because it is stable coin and their government wanted to regulate it, too. So if they can make some laws regarding stablecoins, then what's next? They'll gonna do the same thing with the other cryptocurtency in the futute? I hope not.

Government I know will always want to control everything and they have been trying to do that in the cryptospace but have not been successful. But there's a saying that says "If you can't beat them, join them". I think that's what is going to happen in this arena. No government will be able to stop the growth of the bitcoin and cryptocurrencies ecosystem. They can only try to control or regulate the activities of organizations that into the space but the development of the sector cannot be dwarfed by their efforts. The end result will likely be that every government now owns digital currency and those stablecoins that pegged to fiat currencies may end up being the victims while other non-stable coins will continue to thrive.