Crypto News: New York State Introduces Bill to Accept Fiat-Collateralized Stablecoins for Bail Payments
New York State has put forth a new legislative proposal, dubbed New York Assembly Bill 7024, which aims to permit the use of fiat-collateralized stablecoins as a viable option for bail payments.
If approved, this bill would expand the existing roster of approved methods for posting bail bonds, which currently includes cash, insurance, and credit cards.
While the bill does not specify the eligible stablecoins, this development could provide a much-needed boost to the struggling stablecoin market.
Over the past year, the stablecoin sector has experienced a decline, with a market capitalization of approximately $131 billion, accounting for only 11% of the overall cryptocurrency market.
Tether continues to dominate the stablecoin market, with a commanding 62% market share and a circulating supply of $82 billion. Despite facing heightened competition, Tether has consistently increased its supply this year, solidifying its position as the market leader.
In contrast, Circle’s USDC stablecoin has witnessed a decline in market share, comprising only 23% of the stablecoin market with a circulation of $30 billion. Binance USD (BUSD), under scrutiny due to regulatory concerns surrounding its issuer Paxos, has struggled to keep pace, representing a mere 4.3% of the stablecoin market with a supply of $5.7 billion.
This legislative initiative comes in the midst of heightened regulatory actions by New York Attorney General Letitia James against the cryptocurrency industry. Her efforts, including the introduction of the Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act, seek to strengthen regulatory measures, introduce public audits for cryptocurrency exchanges, mitigate conflicts of interest arising from shared ownership, prohibit crypto asset lending and borrowing, and restrict exchange-issued tokens.
Despite the rigorous regulatory landscape, the acceptance of stablecoins for bail bonds signifies a positive stride for New York State and could potentially breathe new life into the struggling stablecoin market.
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