The US Congress is actively promoting legislation concerning stablecoins, including the GENIUS Act and the STABLE Act, expected to come into effect by 2025. These initiatives are attracting attention due to bipartisan support in the Senate.
Bipartisan Support for GENIUS Act
Congressional leaders are supporting the GENIUS Act, which has strong bipartisan backing. This initiative is part of a broader regulatory agenda aimed at stabilizing market structure and transaction efficiency.
Circle and Tether Face New Compliance Demands
Major stablecoin issuers like Circle and Tether will face new compliance and capital requirements. These changes may affect liquidity and settlement protocols on-chain.
Lessons from Past BitLicense Adoption
Similar regulatory initiatives in the past led to short-term market volatility, especially among major stablecoins. This legislative shift echoes the adoption of BitLicense, which ultimately stabilized and encouraged market growth. Experts suggest that structured compliance may spur both retail and DeFi growth.
Thus, the GENIUS Act and STABLE Act may significantly redefine the stablecoin landscape, increasing issuer requirements and fostering institutional and retail investment growth in this asset category.
