A major U.S. digital assets trade association recently issued a call to action aimed at policymakers to support stablecoins in a report presenting various research findings indicating stablecoins can continue to strengthen the dominance of the U.S. dollar. The report, which is addressed to policymakers, emphasizes the dominance of USD-linked stablecoins and "highlights the increasing global adoption of USD-linked stablecoins and their critical role in sustaining the U.S. dollar's position as the world's primary reserve currency." The report also "evaluates current U.S. legislative proposals, identifying both the opportunities and challenges in developing a regulatory framework that supports a diverse and responsible stablecoin ecosystem." According to the report, the lack of a regulatory framework for stablecoins leaves open the door to other countries developing their own stablecoins, potentially diminishing the importance of the U.S. dollar globally. The report concludes by asking policymakers to "swiftly craft a regulatory framework that empowers the next phase of U.S. dollar diplomacy," saying, "Immediate action is essential to secure the dollar's influence and leadership in the digital age."
For more information, please refer to the following links:
- How Stablecoins Are Extending U.S. Dollar Dominance
- How Stablecoins Can Strengthen U.S. Dollar Dominance
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