- This bill could increase the relevancy of cryptocurrencies.
- Better governance in digital assets across the United States can be noted.
The United States comprises 50 states, but currently, only New York has proposed a bill allowing bail bond payments through stablecoins. Until its introduction, people could only make bail bond payments using cash, insurance, and credit cards in New York. This New York Assembly Bill 7024 will not only provide an additional option to people trying to pay their bail bonds. It would also increase the adoption of cryptocurrencies across the country. However, the bill does not specify a particular stablecoin that can be used for bail bond payments. Tether (USDT), Circle (USDC), Binance (BUSD), and True USD (TUSD), either of them can be used by you to complete bail bond payments.
Cryptocurrencies Finally Getting Recognized
The new bill is considered a landmark event for cryptocurrencies’ wide-range adoption in the country. The fiat collateralized stablecoins will soon work as examples across all other 49 states to do the same for their bail bond payments. It will also bring changes to Crypto Regulation, Protection, Transparency, and Oversight Act, better known as Crypto Act, for publicly auditing cryptocurrency exchanges.
Once this law comes into motion, individually owning cryptocurrency exchanges would be prohibited as it will be regarded as a conflict of interest. Moreover, the lending and borrowing of crypto assets would face a lot of restrictions.
Before this law even came into consideration, NYAG had already started hunting down cryptocurrency exchanges that were illegally lending crypto assets. Ku Coin, Celsius, and Coin EX are a few of them. Even Binance, the most popular cryptocurrency exchange, was stopped from buying the majority stake of Voyager, a crypto lending platform.
Present Scenario of Stablecoins
The popularity of digital assets is growing yearly. Hence, if it continues to follow such a trend, its valuation could be doubled in a few years. However, the stablecoin ecosystem has recently faced some market price downtrends.
At least 11% of stablecoins market valuation was wiped off only this year. Even after such astronomical changes in the stablecoins ecosystem, Tether remains at the top of the chart with a 62% share. Slowly and steadily, Tether continues to grow year after year while its competitors are scrabbling for growth.
Yet another popular stablecoin BUSD of Binance faced significant issues with its exchange coin because of many regulatory actions pending. BUSD only covers 4.3% of the total stablecoin ecosystem compared to others. Circle, or USDC, has succumbed to only 23% of the market share because of the recent price fluctuations in crypto markets.
One of the prime reasons behind stablecoins getting such recognition can be linked to their direct connection to fiat-based currency. This stability is crucial for stablecoins, as cryptocurrencies are known for their extreme volatility.
Conclusion
The cryptocurrency world has already been marred with uncertainty in its rules and regulations. Therefore, this new law introduced by New York to improve the bail bond payment system can work as a stepping stone towards its wide range adaptivity. The digital asset industry needs such strict regulations to protect the money invested by people long-term.
