The GENIUS Act concerning stablecoins is moving forward in the US, potentially foreseeing changes in regulation and usage of these financial instruments.
Development of the GENIUS Act
The US Senate is advancing the GENIUS Act, aimed at creating a clear legal framework for stablecoin collateralization. The bill received support, passing with a vote of 66–32. Andrei Grachev, managing partner at DWF Labs, claims this move legitimizes stablecoins as financial instruments, providing confidence for institutional investors.
Stablecoins vs. Banking Monopoly
The rise of stablecoins is creating tensions between traditional banks and the crypto industry. Some experts, such as Austin Campbell, warn of banking lobby pressure against the advantages of stablecoins, pointing out their potential threat to traditional financial services that offer low interest rates.
Hong Kong Passes Stablecoin Bill
Hong Kong has passed its stablecoin bill, creating conditions for licensing stablecoin issuers. The legislation requires all stablecoins to be backed by fiat currency reserves, establishing transparent and safe terms for digital assets.
The GENIUS Act and new regulations in Hong Kong may signal significant changes in the stablecoin market, providing new opportunities and raising questions about regulation and competitiveness.
