The GENIUS Act, aimed at regulating stablecoins, has gained bipartisan support in the U.S. House of Representatives, potentially altering the landscape of digital assets.
Understanding the GENIUS Act
Representative French Hill announced bipartisan support for the GENIUS Act, which is set to be discussed in the House on July 16, 2025. This Act is intended to provide federal regulation for dollar-backed stablecoins.
How the Act Will Impact the Stablecoin Market
The adoption of the GENIUS Act will affect stablecoins like USDC and USDT, potentially altering their use in DeFi. An increase in institutional inflows is expected as issuers may prefer U.S. domiciles. The Act specifically targets stablecoin issuance and backing, influencing treasury holdings and reserves.
Expert Opinions on Future Prospects
Historical trends show that regulatory stability generally leads to short-term volatility but promotes long-term market growth. Experts suggest that if the Act succeeds, stablecoins could solidify their role in global financial markets.
The support for the GENIUS Act in the House represents a significant step towards organizing the stablecoin market and facilitating their broader integration into U.S. financial systems.
