The recently passed GENIUS Act is poised to change the approach to stablecoins in the U.S., focusing issuers on payment utilities rather than yield generation.
Regulatory Changes for Stablecoins
Fabian Dori, Chief Investment Officer at Sygnum, states that the GENIUS Act creates a distinct separation between yield-bearing stablecoins and those intended for payments. This adjustment brings the U.S. regulatory framework closer to the EU’s Markets in Crypto-Assets (MiCA) regulation, laying a foundation for 'global consensus.'
Shift to Payment Functionality
Dori points out that this newfound clarity provides confidence for organizations and issuers to create innovative applications. The interest from major corporations like Mastercard and PayPal indicates a growing demand for payment functionalities and services. This shift aims to build a more user-friendly, efficient, and cost-effective settlement process.
Importance of Retail Adoption
Despite these changes, Dori emphasizes that retail adoption remains a critical factor. The success of stablecoin integration will depend on the user-friendliness of the platforms that can engage consumers. The significance of enhancing payment-focused stablecoin adoption is echoed by experts from Polygon Labs.
The GENIUS Act represents a significant step towards stricter stablecoin regulation, which in turn opens new opportunities for their use in real-world financial transactions.
