The recent GENIUS bill spurs discussions on its impact on stablecoins, blockchain, and international investments.
Introduction to the GENIUS Bill
The GENIUS stablecoin bill has sparked controversy due to speculations that it serves as a hidden mechanism for introducing CBDC controls. Smardex platform co-founder Jean Rausis expressed concerns that the US government will use this bill to control stablecoin issuers similarly to the EU's MiCA regulations. Rausis argues that this creates the illusion of decentralization while allowing complete government control over digital assets. The bill includes stricter AML provisions and increased liquidity requirements, potentially giving US issuers a competitive edge over offshore entities.
HUD's Exploration: Blockchain and Stablecoins
The US Department of Housing and Urban Development is considering using blockchain and stablecoins for grant tracking and payment processing. According to a ProPublica report, there is interest in using blockchain technology to monitor financial flows. Internal discussions revealed mixed reactions, with some staff viewing the project as inefficient and risky due to the complexity and potential volatility of stablecoin payments.
MGX Investment in Binance via Stablecoins
Abu Dhabi-based investment firm MGX invested $2 billion in Binance using stablecoins. This move may become one of the largest funding deals in crypto history. It marks Binance's first institutional investment conducted entirely with stablecoins. It is also MGX's first foray into the crypto sector, seeking to bridge innovations in AI, blockchain, and finance. Projected funding in the crypto sector is expected to grow in 2025 due to positive regulatory developments in the US.
Regulatory measures like GENIUS and the adoption of cutting-edge technologies highlight the significance of stablecoins and blockchain in today's economy.
