In the middle of the bipartisan Lummis-Gillibrand Payment Stablecoin Act that was just introduced, well-known Ethereum [ETH] community member Ryan Berckmans provided an interesting viewpoint.
"From what I've read so far, the bill is very bullish and gives Ethereum unprecedented legitimacy."
He continued,
"As written, the new stablecoin bill could send ETH/BTC from today's 29.92% to 40%+."
Contrasting views on the stablecoin legislation
This emphasizes how the bill deals with issues that traditional finance (TradFi) and cryptocurrency investors sometimes approach with skepticism: the durability of Ethereum's on-chain economy.
Berckmans observed the same thing and said,
"This is fixed by the stablecoin bill.”
In light of this, he thinks that the regulatory environment will become more stable as a result of this bill, which will boost investor confidence and adoption of Ethereum.
Against this perspective, however, Variant's Chief Legal Officer, Jake Chervinsky, stated in opposition to the law,
"The bill that was released today has many flaws; it seems to outlaw almost everything but a small range of controlled, custodial stablecoins. The current situation would be even worse than this."
Consequently, highlighting the significance of stablecoin laws in creating cryptocurrency policy and their influence on the larger cryptocurrency market.
Chervinsky went on to say,
"The bill picks winners and losers and puts an end to innovation, instead of laying out reasonable requirements for custodial stablecoins."
As @CryptoTony pointed out, despite this criticism, social media appears to be positive about stablecoins.
"#Stablecoins continue to be the top gainers. Volatility has somewhat subsided."
Thus, despite Chervinsky's critique, Berckmans feels very optimistic about the measure.
Right now, I really disagree. Overall, I believe this draft would be a big success.
He said in closing,
"In general, I believe that this bill will permanently massively unlock Ethereum's legitimacy and onchain growth, with regrettable but realistic downsides."
What does ETH have in store?
There is precedent for Senators Lummis and Gillibrand to introduce legislation governing digital assets. They had previously presented several laws to control digital assets, but they appeared to have stagnated.
Ethereum appears to be painting the price chart in red on both its daily and weekly charts in the middle of these developments. ETH was down double digits during the last week as of the time of publication, trading at $3,056.57.
April 2024, Cryptoniteuae