The US Senate has developed and approved the GENIUS Act aimed at regulating stablecoins. This event may significantly impact financial and digital markets.
Explanation of the GENIUS Act
The GENIUS Act was passed by the Senate on June 17, 2025, marking a crucial step in the regulation of stablecoins in the US. The bipartisan vote highlights the necessity for a comprehensive regulatory framework.
Impact on the Stablecoin Market
The new law is expected to influence the stablecoin market by increasing the existing demand for USD-backed stablecoins. However, there are risks related to bank liquidity as deposits may shift to digital currencies.
Future Scenarios and Consequences
Potential outcomes of the GENIUS Act include increased Treasury purchases and changes to DeFi platforms that depend on stablecoin liquidity. This may also lead to deposit outflows from banks and increase dollar-backed transactions in the crypto market.
The passage of the GENIUS Act represents a significant step in digital currency regulation in the US. The success of this law will depend on the actions of the House and potential amendments that may impact the digital currency ecosystem both domestically and internationally.
