UBS analysts have predicted that pro-crypto regulations could significantly boost the adoption of stablecoins, with major involvement expected from U.S. banks and fintech companies. This comes as the U.S. government shifts its focus toward stablecoin regulations, prioritizing them over a previously anticipated Strategic Bitcoin Reserve. Lawmakers, including Rep. French Hill and Sen. Cynthia Lummis, have introduced new legislation aimed at providing regulatory clarity for stablecoins and other digital assets. The Digital Assets Subcommittee, chaired by Rep. Bryan Steil, has also begun examining various bills to enhance U.S. leadership in the digital asset space. Analysts believe that the upcoming regulatory changes will accelerate stablecoin adoption, potentially leading to a supply that reaches trillions. Concerns regarding the risks posed by the crypto industry, including scams and illicit finance, were also raised during discussions with Federal Reserve Chair Jerome Powell.