The new initiative in the U.S., known as the GENIUS Act, heralds changes for stablecoins, viewing them as crucial instruments for payments.
Impact of the GENIUS Act on the Stablecoin Market
The GENIUS Act introduces clarity to the regulation of stablecoins, which could increase their role in global finance and shift market dynamics. Under the new rules, stablecoins must be backed 1:1 by U.S. dollars or liquid assets, which strengthens investor confidence in regulated digital assets.
Role of BlackRock and Other Players
BlackRock, the world's largest asset manager, defines stablecoins as key to the future of finance. Collaboration with Circle and Tether under the new legislative framework confirms their significance in regulatory frameworks.
Prospects and Expectations in the Financial Sector
According to BlackRock's expectations, stablecoins will underpin both digital and traditional finance, enhancing institutional adoption. Clear guidelines from the GENIUS Act are expected to increase the U.S. dollar presence and strengthen global financial infrastructure.
The regulation of stablecoins under the GENIUS Act could transform the market and create resilient financial structures, while also increasing institutional trust.
