Recently, the GENIUS Act was passed in the U.S., which could significantly change the stablecoin market. Its impact on crypto regulation and traditional financial organizations raises high expectations.
Significance of the GENIUS Act
The GENIUS Act was passed less than two weeks ago by President Donald Trump and marks the first major legislative initiative in the field of cryptocurrency in the U.S. This law imposes strict requirements on issuers, mandating them to maintain a 1:1 reserve.
Differences Between Types of Stablecoins
Fabian Dori, Chief Investment Officer of Sygnum, noted that the law creates a clear distinction between stablecoins that yield interest and those used for payments. This shift is aimed at redirecting issuers from yield-based models toward payment-focused operations.
Impact of Traditional Organizations on the Stablecoin Market
Many traditional organizations have begun to actively engage in the stablecoin market, focusing on regulatory compliance. In May, Mastercard signed an agreement with MoonPay to facilitate global stablecoin payments. Visa also entered a strategic deal with fintech company BVNK to leverage stablecoin infrastructure.
The GENIUS Act carries significant potential for the development of new applications and services in the stablecoin space, helping to strengthen trust from organizations and issuers.
