Recently, the U.S. Congress approved three important bills regarding digital assets. These bills could significantly alter the regulatory landscape in this area.
Approval of Bills
On July 18, the U.S. House approved three key bills: the Clarity Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act. This event marked a significant victory for regulatory clarity in the digital asset space. The Clarity Act, in particular, establishes a clear jurisdictional boundary between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which is especially important for reducing uncertainty for crypto firms.
Impact of GENIUS Act on Stablecoins
The GENIUS Act is expected to have a significant impact on leading stablecoins, including USDC and USDT. According to Greg Magadini, the Act requires transparency, which could benefit USDC and help it gain market share from USDT. "One of the main elements of the GENIUS Act is the requirement for stablecoins to be backed 1-to-1 by highly liquid reserves," Magadini explained.
Future of Financial Institutions in DeFi
According to Eli Cohen, General Counsel at Centrifuge, the most transformative effect of the bill may lie in how it opens the door for traditional financial institutions to safely engage with DeFi. This could unlock significant opportunities for financial innovation and have a meaningful impact on the real-world asset market.
The approval of the three bills could lead to new opportunities for the crypto industry and financial institutions. Their effects will be observed as a clearer and safer regulatory environment is shaped.
