President Donald Trump has called for the urgent passage of the GENIUS Act, emphasizing the need for stablecoin regulation to boost confidence in the crypto market.
Trump's Appeal to Congress
Donald Trump emphasized the necessity of the swift passage of the GENIUS Act by the U.S. House, insisting that clear regulations are crucial for the stablecoin market. He pointed out that such a framework could benefit both innovation and security.
Reactions from Politicians to GENIUS Act
Political responses to the GENIUS Act have been mixed. Prominent policymakers like Tim Scott have expressed support, seeing it as a significant step for financial and consumer protection. Critics, including Elizabeth Warren, have raised concerns regarding potential regulatory loopholes in the proposed framework.
Prospects for the Stablecoin Market
The enactment of the GENIUS Act could significantly alter financial operations by mandating stablecoin issuers to back their assets with U.S. dollars or Treasurys. This development could lead to market growth and bolster the legitimacy of stablecoins, potentially doubling the U.S. stablecoin market's value over the next decade. Christian Catalini, founder of the MIT Cryptoeconomics Lab, remarked, "If implemented, the GENIUS Act is likely to encourage mainstream adoption of digital currencies."
The passage of the GENIUS Act could enhance clarity in the crypto market and stimulate innovation regarding digital assets in the U.S. The industry closely monitors the upcoming Congressional vote.
