On May 10, New York Assembly Bill 7024 was introduced as an act to modify the statute. Its goal is to create legislation that will allow stablecoins to be used for bail bonds.
Cash, insurance, and credit cards are currently acceptable methods of paying bail bonds, according to the measure.
However, it intends to change the law to include fiat-collateralized stablecoins as an extra payment mechanism. There was no mention of which stablecoins will be allowed. The decision comes in response to New York Attorney General Letitia James’ proposed crypto legislation. On May 5, James also proposed “landmark legislation to tighten regulations” on the state’s crypto business. Stablecoin adoption in New York could pave the path for other states to follow suit.
The Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act would force cryptocurrency exchanges to undergo independent public audits. Furthermore, to avoid conflicts of interest, it would prohibit individuals from holding the same companies, such as brokerages and tokens.
The restrictions would also make lending and borrowing crypto assets illegal. Furthermore, the conflict of interest clause would impose restrictions on exchange-issued tokens.
Acceptance of stablecoins for bail bonds, on the other hand, is a step in the right direction for New York State.
However, the NYAG has recently been vigorously cracking down on crypto firms. So far this year, she has launched legal action against Celsius, CoinEX, and KuCoin. Letitia James was also against the Binance. Voyager, the controversial crypto lending company, has been acquired by the United States.
For the past year or two, the stablecoin ecosystem has been in decline. The total market capitalization of all stablecoins is currently around $131 billion. Furthermore, this represents approximately 11% of the total cryptocurrency market, a figure that has been declining this year.
Tether holds a 62% market share and has $82 billion USD in circulation. This year, its supply has gradually increased while competitors have declined. Tether supply has increased by 24% since the beginning of 2023, giving it a dominant market domination.
Circle, on the other hand, has been declining, and USDC now accounts for only 23% of the market with $30 billion in circulation.
Binance USD (BUSD) has also been declining as a result of regulatory action taken against its issuer Paxos. With a supply of $5.7 billion, BUSD accounts for only 4.3% of the stablecoin market.