Tether looks more like the sort of Bitcoin bank cypherpunk Hal Finney once theorized about issuing its own notes against its reserves rather than simply a technology for the propagation of the US dollar.
This seems a bit optimistic, or at least, I had not considered it before.
A few other notes:
A key feature of the legislation is its strict criteria for who can issue these stablecoins: only federally or state-qualified entities, or subsidiaries of insured depository institutions.
I'm sure the big players will enjoy a regulatory most.
The bill mandates one-to-one reserve backing of stablecoins with US currency or similarly liquid assets, and notably, stablecoins under this bill are excluded from being treated as securities.
And the US gov't will enjoy a compulsory buyer.
"Stablecoins are dollar-denominated assets that live on blockchains, enabling fiat to move more efficiently over the internet, akin to digitized cash that settles quickly and cheaply. They solve inefficiencies in the traditional banking system, where settlement can take days and involve multiple intermediaries,” he explains.
Wouldn't it just make more sense to get rid of all the stupid regulation that makes the arbitrage possible.