According to The Block, strategists at Morgan Stanley believe that as U.S. regulators begin to restrict stablecoin products, the decline in the market value of stablecoins means that crypto liquidity and leverage have declined, and stablecoins play a vital role in crypto transactions. role, their products may compete with the fiat banking system. It believes that stablecoin issuers may have to register and prove that they hold sufficient liquid assets to support the issued stablecoin, citing DataFinnovation analysis, saying that BUSD has not always been fully supported in the past. The availability of stablecoins can serve as a simple indicator of institutional leverage demand affecting prices.