Legislative initiatives for regulating stablecoins are at the forefront of discussions, particularly the GENIUS Act. This article explores the perspectives of key stakeholders and the implications for the US financial system.
Overview of the GENIUS Act
The GENIUS Act, concerning stablecoins, is central to discussions among US lawmakers. This act aims to create a regulatory framework that ensures stability and consumer protection in the stablecoin sector.
Faryar Shirzad's Opinion on the GENIUS Act
Faryar Shirzad, Coinbase's Chief Policy Officer, emphasized that passing the GENIUS Act is a matter of national urgency. He pointed to the need for a 'trusted, digitally native US dollar' to compete in the global market. Shirzad stated: 'The GENIUS Act is about more than innovation—it's economic statecraft, securing the dollar’s dominance.'
STABLE Act: A New Approach to Stablecoin Regulation
In addition to the GENIUS Act, lawmakers are also working on the STABLE Act, which proposes stricter norms for stablecoins. It requires issuers to maintain 1:1 reserves, ensuring stablecoins can be redeemed at face value, enhancing consumer protection.
The regulation of stablecoins is actively being discussed, with the GENIUS Act and STABLE Act offering different approaches to ensuring stability and protection in this field. The adoption of these acts could significantly reshape the financial landscape in the US.
