JPMorgan: Market growth limited even if U.S. stablecoin bill passes

JPMorgan analysts have pointed out that the expectation that the stablecoin market can grow 3-4x within 1-2 years is overly optimistic even if a stablecoin bill passes into law in the United States. According to The Block, they explained that both stablecoin bills prohibit stablecoins from paying interest and aim to define stablecoins as payment instruments similar to existing currencies. These restrictions could hinder the growth of stablecoins because they are less competitive than traditional financial products that provide interest, such as money market funds. They warned that cryptocurrency-pegged stablecoins or algorithmic stablecoins like DAI could be banned. The analysts asserted that yield-generating products such as BlackRock's tokenized government bond BUIDL and Figure Markets' security-type yield token YLDS will continue to grow.