Coinbase Poised to Benefit From STABLE Act, Says Nansen

4 days ago 2

Rommie Analytics

The STABLE Act introduces a federal framework for payment stablecoins, allowing only licensed issuers and requiring stablecoins to be fully backed by cash or short-term U.S. Treasuries. These provisions are designed to enhance transparency, reduce systemic risk, and bring digital dollars under more rigorous regulatory oversight.

Regulatory Moat Could Favor Established Institutions

According to Nansen, the Act would create a “regulatory moat” by setting high compliance standards that favor institutions already aligned with U.S. regulations. This includes major banks and top-tier crypto firms that have proactively built infrastructure for KYC, AML, and custody compliance.

“Entities like Coinbase are well-positioned,” Nansen wrote, citing the exchange’s partnership with Circle and its role in distributing USDC, a fiat-backed stablecoin that aligns with the bill’s vision.

Coinbase’s Custody and Liquidity Advantages

Beyond its stablecoin involvement, Coinbase stands to benefit from an expected rise in demand for regulated custody solutions and on-chain liquidity consolidation. With institutional clients increasingly seeking compliant and secure platforms, Coinbase’s dual role as custodian and exchange could give it a competitive edge in a more tightly regulated environment.

Nansen concluded that if the STABLE Act becomes law, it could accelerate institutional adoption of stablecoins while pushing smaller or offshore projects out of the U.S. market.

The post Coinbase Poised to Benefit From STABLE Act, Says Nansen appeared first on Coindoo.

Read Entire Article