The U.S. Senate has approved the GENIUS Act, marking the first federal regulatory framework for stablecoins in the country. The bill is now set for review by the House of Representatives.
Stablecoins: Market Ready for Growth
The total market capitalization of dollar-pegged stablecoins has surpassed $250 billion, with ten individual tokens now exceeding $1 billion in circulation. Tether (USDT) still commands around 75% of the supply, while Circle's USDC holds 11%. Recent entrants to the market are offering tokens like 'on-chain yield', showcasing the growing interest in cash-like assets.
What the GENIUS Act Does
Under the legislation, only licensed entities, including nationally chartered banks, will be permitted to issue stablecoins. Issuers must maintain a 1:1 reserve ratio, meaning they need to hold cash or treasury bills for every token issued. The regulations aim to provide clarity for investors regarding the backing of their assets.
Real-World Example: Remittix and Its Unique Offers
The Remittix project highlights how regulation can impact the real market. The platform enables freelancers to convert their cryptocurrency earnings into fiat money swiftly and at minimal cost. Currently, Remittix offers a convenient method for converting cryptocurrency to cash, demonstrating how such companies can drive growth in the stablecoin market.
With the new legislation in place, stablecoins are likely to become a vital component of financial processes in the U.S. The emergence of projects like Remittix emphasizes the potential for growth and transformation in the payments sector.
