S&P Global: The passage of the Stablecoin Act may encourage banks to enter the market and limit non-bank entities.

Standard & Poor's Global Ratings has stated that if the latest stablecoin bill proposed by the US Senate is passed, it may encourage banks to enter the stablecoin market. In such a scenario, Tether could potentially decline. Standard & Poor's Global Ratings further explains that if the new legislation is approved, it will impose a maximum issuance limit of $10 billion for entities without a banking license, thereby providing a competitive advantage for banks.