{"id":53420,"date":"2021-11-23T18:02:23","date_gmt":"2021-11-23T16:02:23","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=53420"},"modified":"2025-09-03T15:04:00","modified_gmt":"2025-09-03T12:04:00","slug":"bank-of-america-stablecoin-regulation-as-a-catalyst-for-mass-adoption","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bank-of-america-stablecoin-regulation-as-a-catalyst-for-mass-adoption\/","title":{"rendered":"Bank of America: Stablecoin Regulation as a Catalyst for Mass Adoption"},"content":{"rendered":"

A US Treasury Department report on the risks of stablecoins<\/a> is an ‘indicator of urgency’ for regulating ‘stablecoins’, given their potential to become a viable payment method. Bank of America (BofA) shares this view, writes CoinDesk<\/a>.<\/p>\n

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According to the memo, institutions are awaiting regulatory clarity before granting access to digital assets.<\/p>\n

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The analysts stressed that the regulatory framework should incentivize companies to integrate blockchain technology and stablecoins with their platforms.<\/p>\n<\/blockquote>\n

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In their view, Mastercard, Signature, Visa and Western Union could boost their capitalization through stablecoin regulation. Bank of America analysts describe stablecoins as a ‘systemically important asset’ with a market value of about $141 billion and quarterly transaction volumes above $1 trillion in 2021.<\/p>\n

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In the Treasury, by contrast, they saw systemic risk in the rapid growth of stablecoins. The authors of the document urged equating coin issuers with depository institutions with mandatory deposit insurance.<\/p>\n

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Which, as noted by BofA, could lead banks themselves to issue their own ‘stablecoins‘.<\/p>\n

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Earlier, US Senators diverged on opinions regarding the Treasury report. In particular, Cynthia Lummis called the requirement to treat asset issuers as banks erroneous. However the initiative found support<\/a> at the main operator of USDC, Circle.<\/p>\n

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As reported, Treasury Secretary Janet Yellen announced in July<\/a> the convening of the President’s Working Group on Financial Markets to discuss the regulation of stablecoins.<\/p>\n

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At that meeting, the Fed<\/span> stated that lack of transparency of ‘stablecoins’ could threaten financial stability<\/a>.<\/p>\n

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In September, the SEC<\/span> Chairman Gary Gensler pointed tothe risk of widespread use<\/a> of stablecoins and described them as ‘poker chips in a crypto-casino’<\/a>.<\/p>\n

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Subscribe to ForkLog news on Telegram: ForkLog Feed<\/a> \u2014 the full news feed, ForkLog<\/a> \u2014 the most important news, infographics and opinions.<\/p>\n","protected":false},"excerpt":{"rendered":"

A US Treasury report on the risks of stablecoins is an ‘indicator of urgency’ for regulating ‘stablecoins’, given their potential to become a viable method of payment. Bank of America (BofA) shares this view, according to CoinDesk.<\/p>\n","protected":false},"author":1,"featured_media":53421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2027,807,26],"class_list":["post-53420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-america","tag-stablecoins","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/53420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=53420"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/53420\/revisions"}],"predecessor-version":[{"id":53422,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/53420\/revisions\/53422"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/53421"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=53420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=53420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=53420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}