The crypto industry in the US is facing growing pressure from regulators. One key element of this pressure is the GENIUS Act, aimed at stabilizing the stablecoin market.
Escalation of Regulatory Battle in the US
In 2021, the situation in the American crypto landscape became tense as Senator Elizabeth Warren and SEC Chair Gary Gensler launched a blitz against cryptocurrencies, declaring war on platforms through lawsuits and legislative efforts that many feared could seriously threaten the sector's development.
The GENIUS Act and Its Features
The GENIUS Act proposed by Elizabeth Warren seeks to impose additional responsibilities on stablecoin issuers. One highlighted point requires them to monitor and report all illicit transactions. This creates significant challenges for stablecoins since the monitoring requirements pertain not only to initial transactions but to all related operations.
Possible Consequences for the Crypto Industry
The crypto industry may face tremendous difficulties as regulatory frameworks expand. While proposed measures could enhance control, they might also create barriers to innovation, particularly for smaller market players. Such changes could lead to power concentration among major banks, impacting the sector's competitiveness.
The situation surrounding the GENIUS Act highlights the escalating tension between regulators and the crypto industry in the US. It is important to note that these initiatives may have a lasting impact on the future of cryptocurrencies and stablecoins, which requires vigilance from all market participants.
