The recent signing of the GENIUS Act has garnered attention for stablecoins, setting new standards in the financial sector. Industry leaders are discussing potential changes in the use and responsibilities associated with stablecoins.
The Role of GENIUS Act in Stablecoin Regulation
The GENIUS Act was signed by U.S. President Donald Trump, legalizing stablecoins on the condition that they are backed by liquid assets such as U.S. dollars and short-term treasuries. This initiative aims to ensure transparency and trust in stablecoins, requiring issuers to periodically disclose the composition of reserves.
Expert Views on the Future of Stablecoins
Jack McDonald, Senior Vice President of Stablecoins at Ripple, noted that interest in creating stablecoins is increasing among consumer and tech companies. However, he warned against viewing stablecoins merely as tools, asserting the need to consider their serious infrastructure component. Additionally, Brian Armstrong, CEO of Coinbase, expressed support for the GENIUS Act, claiming that this law could modernize outdated financial systems.
The Need for Further Legislation
Armstrong emphasized that despite the progressive nature of the GENIUS Act, additional legislation is required to govern the broader crypto space. He urged legislators to consider the Clarity Bill, expecting it to be reviewed by the end of September. Thus, the question of the future development and regulation of stablecoins remains pertinent.
The signing of the GENIUS Act marks a significant milestone in stablecoin regulation, as agreed by experts from Ripple and Coinbase. Given the ongoing discussions and changes in industry regulation, the focus now shifts toward implementation and future requirements for cryptocurrencies in the United States.
