The passage of the GENIUS Act in the US in July 2025 established new regulatory guidelines for stablecoins, prompting a response from the European Central Bank.
GENIUS Act Details
Signed by US President Donald Trump, the GENIUS Act mandates dollar backing and consumer protections for stablecoins, influencing global regulatory frameworks.
European Central Bank's Reaction
The GENIUS Act caught the EU off guard, prompting urgent discussions within the European Central Bank regarding the acceleration of the digital euro project and the potential use of public blockchains like Ethereum.
Market Trends and Implications
Investor preferences are shifting towards dollar-backed assets, leading to anticipated increases in interest rates in the eurozone as demand for euro-denominated bonds declines.
The US GENIUS Act calls for a reevaluation of the EU digital currency policies and may have long-term effects on the global financial market.
