Progress at StableCOin Bill in the United States could lead to a multi-year crypto bull market, Asset Manager Bitwise said in a report on Tuesday.
The Senate agreed to promote the genius action for a final vote on Monday, the report noted, which means the United States could adopt its first piece of crypto -emerging this summer.
“Outside of January 2024 approval of Spot Bitcoin ETFs, this is the most important regulatory development in Krypto’s history. It could even be greater,” wrote Matt Hougan, chief investment manager at Bitwise.
Stableecoins are cryptocurrencies whose value is bound to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets and are also used to transfer money internationally.
Senate’s guidance and the establishment of the National Innovation for US StableCecoins (Genius) Act mandates Federal regulation for stablecoins with a market capital of more than $ 10 billion with the potential for state regulation if it is in accordance with federal rules. The representatives’ stable law requires state regulation without any conditions.
Bitvis noted that stablecoin issuers must follow a number of rules, but there is no “overall federal framework.” Genius ACT determines that a legislative framework.
Once approved this could set the scene for a long term rally in other crypto assets than just Bitcoin
Said Bitwise, and the biggest potential recipients are ether, Solana and decentralized finance (defi) assets like uniswap and aave.
The StableCOin market could reach $ 2.5 trillion in size in a short time, from $ 245 billion at the moment, the report added.
Read more: StableCOins to go mainstream in 2025 after US regulatory progress: Deutsche Bank
