Michael Barr, the head of the central bank's regulatory division, emphasized that the Federal Reserve is currently in the preliminary research stage and would require official legislation from Congress to formalize any action.
The Centre Consortium, co-operatively overseen by Circle and Coinbase, is currently in the process of being closed down. Consequently, Circle will be taking over the internal management of issuance and governance for the USDC stablecoin.
The leading Democratic representative on the House Financial Services Committee emphasized the necessity of establishing federal regulations prior to a company of PayPal's magnitude launching a stablecoin.
The payments behemoth has been open about its necessity to halt and confiscate cryptocurrency accounts that breach its terms of service. However, does this truly qualify as genuine cryptocurrency involvement?
'The difference is significant because we have a prudential regulator,' said Paxos head of strategy Walter Hessert.
USDT has surged to a market capitalization of $83.2 billion, successfully recuperating all the losses suffered since the collapse of the blockchain project Terra over a year ago.
Macro analyst Tom Dunleavy suggests that the stablecoin market's contraction is indicative of the ongoing bearish phase in the crypto market.
The Markets in Crypto-Assets Regulation, which was formally enacted on Thursday by the EU, represents the most comprehensive framework of its kind. What impact will it have on the regulation of digital assets in non-EU countries?
The 20% year-on-year growth in market capitalization can be attributed primarily to Tether's aggressive issuance on Tron, a competing blockchain to Ethereum.
According to reports, 'endogenously collateralized stablecoins,' which rely on the value of an attached cryptocurrency from the same inventor to maintain a stable price, will be covered by the definition of the bill.