The passage of the Genius Act in the U.S. Senate marks a significant step in stablecoin regulation, anticipating their integration into everyday financial processes.
Key Regulatory Changes for Stablecoins
According to industry experts, the Genius Act could remove significant barriers for institutional investment in stablecoins. Ira Auerbach, Head of Tandem at Offchain Labs, stated that the law "provides clear regulatory guardrails for stablecoins, clearing the final major hurdle for their adoption." This could attract billions of dollars in institutional capital to the industry.
Global Impact and Expectations from Other Countries
The regulatory clarity provided by the Genius Act is expected to foster the emergence of new issuers not just in the U.S., but globally. John McCarthy, General Counsel at the DeFi lending protocol Morpho, noted that "this clarity will likely usher in numerous new issuers and drive adoption by institutions and retail alike." Other countries are closely monitoring legislative changes in the U.S.
Prospects of Stablecoins in Everyday Life
Stablecoins promise to significantly change the everyday lives of consumers, enabling the creation of products accessible to millions. Stephane Gosselin, CEO of OneBalance, predicts that "with improving regulations like the Genius Act, major platforms will soon onboard millions." The application of stablecoins for remittances and protecting savings from inflation could become a substantial reality.
The passage of the Genius Act in the U.S. Senate unveils new horizons for stablecoins, allowing them to become an integral part of financial infrastructure. However, the necessity to protect users’ privacy remains crucial.
