The GENIUS Act has become a topic of discussion again after Donald Trump's support. This legislation, which has sparked debate among lawmakers, is linked to the potential emergence of a central bank digital currency (CBDC) and its implications for the crypto market.
Concerns About the GENIUS Act
Critics of the GENIUS Act, especially from the Freedom Caucus, raised concerns about the lack of clear prohibitions on CBDC creation. Additionally, the absence of input and amendments during the bill's discussion has posed issues. Kadan Stadelmann, CTO of Komodo, noted that the bill does not explicitly protect against the possibility of a CBDC being launched by the Federal Reserve.
Reddit Reactions
On Reddit, within the CryptoCurrency community, users expressed divided opinions about the GENIUS Act. One user welcomed it as a means to provide clarity for decentralized projects, while another expressed concerns about banks potentially launching treasury-backed stablecoins, which could drive Bitcoin prices up and trigger inflation in the process.
Bitcoin Price and Market Drivers
Bitcoin's price has been influenced by legislative changes. Following the first procedural vote, the price dropped by 3%, falling below $116,000. However, the renewed support for the GENIUS Act from Trump set the Bitcoin price above $118,000 again. Future legal changes are expected to continue impacting Bitcoin price, which recently fluctuated between $120,000 and $123,000.
The GENIUS Act has the potential to significantly alter cryptocurrency regulation in the U.S. Ongoing discussions about CBDC risks and limitations for decentralized finance continue. The future price of Bitcoin relies on the final decisions regarding this legislation, which may either catalyze innovation or hinder the sector's independence.
