U.S. Struggles to Maintain Leadership in the Stablecoin Sector Amid Regulatory Challenges”

The United States is making concerted efforts to retain its position as a leader in stablecoin policy and competitiveness. However, experts find it challenging to label the country as the primary player in this industry. In a recent cryptocurrency geography report for 2023, it was stated that 60% of all stablecoins are issued by entities that “do not have a permanent residence in the United States.”

Most of the stablecoin activity takes place through entities licensed outside of America, according to data from the top 50 major trading platforms. Experts from CoinDesk expressed the view that “American policymakers should not passively watch this payment innovation trend continue. Instead, they should prioritize enacting legislation and implementing new rules focused on properly overseeing this activity and benefiting from the growing popularity of this asset class.”

Former counsel for the decentralized exchange project 0x Labs, Jason Somensatto, noted that well-thought-out regulation could provide the United States with a mechanism to supervise the use of financial products tied to the U.S. dollar. This would secure a crucial role in overseeing stablecoin issuers.

He emphasized that otherwise, the United States could lose the ability to set rules for combating money laundering and countering terrorism financing.

Such a situation would have adverse consequences for national and global security. Additionally, U.S. authorities risk losing the opportunity to become the leading global cryptocurrency hub and contribute to the development of this technology. According to analysts, this is critically important for strengthening the role of the USD in the global economy.