The GENIUS Act, aimed at regulating stablecoins, received support in the Senate and is now awaiting a House vote. Traders are betting on high odds of its passage.
Substance of the GENIUS Act
The GENIUS Act proposes licensing for stablecoin issuers under a federal framework with clear compliance requirements. It mandates 100% reserve backing, regular audits for large issuers, and oversight of foreign entities serving U.S. customers.
Industry Reaction to Expected Passage
Crypto investors view the GENIUS Act as a critical turning point for stablecoin oversight in the U.S. Some believe it provides the necessary clarity and trust to expand institutional adoption of stablecoins. However, there are concerns that strict requirements may hinder innovation or push smaller issuers out of the market. Critics have also raised concerns about political influence, particularly regarding Trump's support and potential connections to firms linked to stablecoins.
House Vote and Corporate Interest
The GENIUS Act must now navigate the House, where Republicans hold a narrow majority, and further debate is expected. While Trump has signaled support, reports suggest that companies like Apple and Google are exploring stablecoin launches under this framework. The potential involvement of major corporations could reshape the stablecoin landscape and shift market dominance.
The passage of the GENIUS Act, alongside other related legislation, could establish a new regulatory framework for cryptocurrencies in the U.S., shaping the future of stablecoins and digital assets.
