Bank of America sees stablecoin regulation as a catalyst for its mass adoption - Aliens: AI Crypto News & Markets Updates

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Bank of America sees stablecoin regulation as a catalyst for its mass adoption

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Aliens

Tue, Nov 23, 2021

The Bank of America stated in a research report released on Tuesday. It stated that the Treasury Department’s "Report on Stablecoins (RoS)" published earlier this month is an "indication of urgency" for regulating stablecoins because stablecoins are likely Become a viable payment method.

The bank said that institutions are waiting for the rules to be determined before increasing their exposure to digital assets. “Regulatory framework should incentivize payments companies to integrate blockchain technology and stablecoins into their platforms.” Mastercard, Signature, Visa and Western Union Banks are all buy-rated stocks within the scope of Bank of America's research. Their market value may increase due to stable currency regulation. The bank said that stablecoins need to be regulated because it is now a "systemically important asset" with a market value of approximately US$141 billion. It has a quarterly trading volume of more than US$1 trillion in 2021.

The Bank of America stated in the report that despite the size and growth of the market, stablecoin issuers are not regulated by a comprehensive framework. It can also "provide varying levels of transparency into the composition of reserves that back their stablecoin." RoS pointed out that "potential for rapid stablecoin growth creates systemic risk" because "digital assets and traditional financial markets are more connected than many realize." The RoS recommends that the US Congress act quickly, and pass legislation to incorporate stablecoins into the banking system and allow federal oversight. The bank added that if the regulator decides that all stablecoin issuers must be insured depository institutions, this may cause banks to issue their own stablecoins.

Source: CoinDesk

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