The US Congress has passed the GENIUS Act concerning stablecoin regulation, awaiting President Trump's signature, which will significantly affect the cryptocurrency market.
What is the GENIUS Act?
The GENIUS Act, sponsored by Senator Bill Hagerty, proposes to create a federal-state framework for regulating payment stablecoin issuers. The legislation has passed committee discussions and received bipartisan support, clearing the House with a 308-122 vote. Once signed by the President, it will introduce a regulatory regime for major stablecoins like USDC and USDT, requiring compliance with specific guidelines by November 2026.
Impact on Stablecoin Market
Stablecoin issuers must prepare for increased scrutiny and compliance, potentially altering market dynamics. The legislation's effects will influence primary networks like Ethereum, Solana, and Tron, which currently facilitate stablecoin transactions. Regulatory clarity may open new pathways for stablecoin development and shift liquidity in financial platforms.
Future Changes in Crypto Regulation
The GENIUS Act signifies a turning point in US cryptocurrency regulation and may set a precedent for other jurisdictions. Its implementation requires strategic adjustments from market participants, although the full implications remain uncertain pending additional regulatory guidance.
The GENIUS Act represents a significant step towards establishing a regulated environment for stablecoins in the US, impacting the future of cryptocurrencies and market conditions.
