Amundi, Europe's leading asset manager, expresses serious concerns regarding the GENIUS Act, which could significantly impact stablecoins and the traditional financial system.
Amundi's Concerns Over the Dollar
Vincent Mortier, Chief Investment Officer at Amundi, noted that promoting a stablecoin could create "an alternative to the US dollar," which might further weaken its position globally.
> "It could be genius, or it could be evil. Promoting a stablecoin could actually create 'an alternative to the US dollar [...] that can lead to more weakening of the dollar,'" - Mortier.
Impact of the GENIUS Act on Stablecoins
The bill, officially supported by the White House and Vice President Vance, seeks to mandate full collateralization of dollar-backed stablecoins. This change may increase demand for US Treasury bonds, bolstering institutional flows. However, there are concerns about stablecoin issuers transforming into 'quasi-banks.' Expert Christian Catalini from MIT suggests that these changes might pave the way for stablecoins to become mainstream.
Potential Changes in Financial Systems
Immediate effects on markets may include changes in the regulatory landscape and debates regarding the GENIUS Act's impact on dollar-backed stablecoins. Key players like Tether (USDT) and Circle (USDC) may face heightened scrutiny, while assets like ETH and BTC might experience indirect effects due to stablecoin liquidity changes. The GENIUS Act represents a significant federal move in stablecoin regulation that could alter traditional financial systems.
Given the evolving regulatory environment, the market may experience shifts in mainstream adoption of stablecoins and liquidity flows. The ongoing dialogue among industry leaders highlights a growing emphasis on ensuring stability while navigating new financial landscapes.
