S&P: U.S. Stablecoin Adoption Faces Hurdles Without Clear Regulation
Institutional adoption of stablecoins is likely to rise once regulatory frameworks are established, according to a new report from S&P Global Ratings.
In a Wednesday analysis, S&P highlighted the absence of stablecoin regulation as a major barrier to broader adoption in the U.S.
“The lack of clear regulatory guidelines has hindered institutional adoption of stablecoins in the U.S.,” analysts led by Mohamed Damak wrote. “Once a regulatory framework is in place, we expect adoption to accelerate.”
Stablecoins, digital assets pegged to traditional currencies like the U.S. dollar or commodities such as gold, serve a crucial role in crypto markets and cross-border transactions.
New legislation is on the horizon. The Senate’s Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act proposes federal oversight for stablecoins with a market capitalization exceeding $10 billion while allowing state oversight if aligned with federal standards. Meanwhile, the House’s STABLE Act would enable state-level regulation without additional conditions.
According to S&P, the introduction of regulations may encourage users to transition from unregulated to regulated stablecoins, reshaping the industry landscape.
“Stablecoins will become increasingly important for on-chain transactions,” the report noted, adding that they could help users safeguard savings from monetary instability in emerging markets and facilitate payments.
Wall Street giant JPMorgan (JPM) recently suggested that Tether (USDT), the dominant stablecoin issuer, could face significant challenges under new U.S. regulations, potentially shifting market dynamics.
