The cryptocurrency market has developed in strength down the year. the prime example of it is market capitalization. The cryptocurrency market capitalization has hit the $3T mark, though it stayed that high only for a brief period. But stablecoins have witnessed a dramatic rise in usage.
This class of cryptocurrencies has its values linked to a single fiat currency. The dramatic surge in usage is thanks partly in that it allows investors to test the digital currency waters but without core issues like daily volatility in prices that put off many from the cryptocurrency market.
This segment has surged dramatically since 2020, expanding a stunning 500%, from a total capitalization of a mere $20B to more than a staggering $125B.
But regulators around the world have also taken notice of this astounding act. The federal administration has toking notice of the development and decided to add a new watchdog, a regulatory body to act as a watchdog for users of stablecoins.
Digital users have fro long been wary of regulatory bindings. But stablecoin issues such as Jeremy Allaire, USDC (Coin Circle) CEO was supportive of such a move.
Allaire said that any proposal to regulate issues of dollar stablecoins in America at the national level was an indication of progress in the industry. He said it was a recognition because as these coins grow, their growth at the internet level could be relatively fast.
Stablecoins And The Role Of Regulations
A Circle spokesperson said that the company has consistently been supportive of Congress introducing federal administration for the issuance.
They said that only through a rigorous collaboration process at a public and private sector level will people benefit from blockchains. They said that stablecoins will lead to an increase in efficiency, safety, and resilience in the financial system.