Recent legislation regarding stablecoins has raised concerns among analysts about potential risks to the global financial system and the dollar.
Warnings about Risks of New Legislation
Vincent Mortier, Chief Investment Officer at Amundi, expressed concerns that the new legislation could unintentionally disrupt global financial processes and undermine the dollar's dominance. He noted that the bill's name might prove ironic, stating, "It could be genius — or it could be evil."
Public Perception of Stablecoins
While stablecoins have traditionally been seen as tools to strengthen the dollar's influence, Mortier believes they may become its competition instead. He suggested that the requirement for these tokens to be 1:1 backed by U.S. assets could indicate fragility rather than confidence.
Prospects and Expert Opinions
The GENIUS Act, passed by the Senate, sets reserve and capital requirements for stablecoin issuers and is now awaiting House approval. This legislation could clear the way for corporate-backed digital dollars, potentially turning stablecoins into a $3.7 trillion market by the end of the decade. Nevertheless, many in the crypto sector view this as an opportunity to fast-track the creation of compliant on-chain financial products.
Thus, the new legislative initiative evokes diverse opinions and concerns within the financial community, while markets are closely monitoring the developments.
