The new GENIUS Act, known as 'Guiding and Establishing National Innovation for US Stablecoins', aims to change the rules of the game in the crypto world and stablecoins.
What is the GENIUS Act
The GENIUS Act provides the first official rules for stablecoins in the United States, focusing on safety, transparency, and wider acceptance of stablecoins in the financial system. The bill includes strict requirements such as banning unbacked algorithmic stablecoins and mandating one-to-one reserve backing.
Support for USD1
USD1, a stablecoin from World Liberty Financial, stands to benefit from the new legislation. USD1 is backed one-to-one with the US dollar and supported by assets like cash and US Treasuries. This stablecoin has already been listed on major centralized exchanges, including MEXC.
Impact on Pi Network
For Pi Network, the introduction of the PI/USD1 trading pair creates a more stable and regulated trading environment. This enhances price discovery and liquidity, making Pi more attractive to institutional investors. However, Pi's price has fallen by 23% over the past month, and further growth requires breaking the $0.80 level.
The GENIUS Act may become a milestone for stablecoin regulation in the US and play a significant role in shaping a stable future for the cryptocurrency market.
