In the United States, a new regulation that could significantly impact the crypto asset markets is under discussion. The GENIUS Act, addressing stablecoins, is a key focus.
Stablecoin Legislation Approved
The bill under discussion in the Senate proposes stringent compliance rules for companies offering stablecoins. These companies will need to register with US authorities and maintain reserves at US financial institutions. Reserves must be entirely in cash, government bonds, or similar liquid assets, subject to monthly independent audits. CEOs of these companies will be legally accountable for the information provided. The bill has gained support in the Senate, however, a final vote is pending.
Tether’s Stance on the US Market
Experts believe that Tether may face challenges complying with the new US regulations. The company is redirecting its focus to countries with more lenient regulations like El Salvador. The proposed bill also considers the possibility of granting exemptions for Tether to enter the US market. The USDC token, issued by Circle, aims to capture a share of the market currently dominated by Tether.
Future of the Stablecoin Market in the US
Anti-money laundering regulations applicable to all US financial institutions will be enforced. Major tech firms within the crypto sector might enter the stablecoin market once regulatory frameworks are clarified. The bill does not define all stablecoins as securities or commodities. The future of the stablecoin market in the US remains uncertain, as the House of Representatives may amend the bill.
The imminent implementation of the new legislation could bring significant changes to the stablecoin market in the US. While the new bill aims to create a transparent competitive environment, some critics express concerns about potential risks and gaps in the implementation of the rules.
