The passing of the GENIUS Act in the US creates a new regulatory landscape for stablecoins, particularly for Ethereum, USDC, and RLUSD.
Impact of the GENIUS Act on Stablecoins
The GENIUS Act establishes federal regulations for stablecoins, requiring a 1:1 reserve backed by cash, Treasury bills, or other low-risk assets. Issuers must also obtain licenses and submit to routine independent audits. As a result, USDC and RLUSD are set to be the major beneficiaries of the new legislation.
Ethereum's Prospects in Regulations
Crypto attorney John Deaton opined that Ethereum may stand to gain even more from the new regulations than other stablecoins. Ethereum supports a wide range of stablecoins and decentralized finance applications, positioning it strategically within the framework of the new rules.
Market and the Future of Stablecoins
With the passing of the GENIUS Act, interest in stablecoins is on the rise, including a potential new offering from Tether. Experts emphasize that gaining approval from regulators is a crucial step towards the sustainable growth of the crypto industry. The more projects that align with regulations, the more stable the market is expected to become.
The enactment of the GENIUS Act promises significant changes for reliable stablecoins and Ethereum, paving the way for new opportunities in financial systems.
