Chris Curl,
Editor
June 2, 2022
The recent failure of Terra Luna and its algorithmic stablecoin – UST – has brought a lot of recent attention to the space.
It also highlighted the importance of traditional stablecoins that are auditable and backed 1:1 by real assets like the US Dollar. I’m referring to projects like Tether (USDT) and USD Coin (USDC).
In light of all this, forward-thinking politicians are trying to pass much-needed legislation on stablecoins.
Back in March, Senator Bill Hagerty (R-TN) introduced the Stablecoin Transparency Act, which requires stablecoins to be backed by government securities that mature within twelve months. It also requires stablecoin issuers to release audited reports of their reserves.
In April, Senator Pat Toomey (R-PA) put forward a discussion draft of the Stablecoin TRUST act. This seeks to establish a regulatory framework for stablecoins.
Biden’s executive order on cryptocurrency issued earlier this year even had an entire section dedicated to the study of stablecoins.
People are starting to understand how important it is for priority to be placed on policy surrounding stablecoins.
Famous entrepreneur and investor Kevin O’Leary thinks it’s absolutely critical for the US to have a clear policy on stablecoins. I spoke with him recently about it and will be sharing the full interview with members of Crypto Cycle.
He believes that regulatory clarity is coming soon for stablecoins and eventually for the rest of the cryptocurrency market. This will be essential for institutional money to flood into the space.
Trillions of dollars in capital are just waiting for the green light.
He envisions a US-dollar-backed stablecoin becoming the new global reserve currency for years to come. Everyone would use it.
He also thinks that crypto will become the 12th sector of the S&P 500 in the coming years.
I agree.
And when that happens, money will be flowing into the crypto market like you wouldn’t believe. This is when fortunes will be made.
Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) have been working tirelessly to advance bipartisan crypto legislation.
A 70-page draft of their crypto regulatory bill was just released. In it they elaborate extensively on stablecoin regulation and digital asset tax policy.
It’s still a work in progress and we won’t have the full bill in hand until June 7th. But it highlights the growing emphasis politicians are placing on providing regulatory clarity for crypto.
I believe that the next few years are going to be pivotal.
And that’s why I’m positioning myself and my readers to profit from this emerging trend.
Find out how by checking out Crypto Cycle.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle