🚨LAST MINUTE: THE U.S. HOUSE OF REPRESENTATIVES APPROVES THE GENIUS ACT.
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) represents a profound change in the crypto ecosystem, especially for traders, stablecoin issuers, and platforms like Binance. Here’s a clear and straightforward analysis of its impact:
⚖️ What does the GENIUS Act propose?
- Strict federal regulation for dollar-pegged stablecoins.
- Only approved financial entities (banks, federally or state-licensed issuers) will be allowed to issue stablecoins.
- Requires 1:1 backing in liquid assets such as cash or Treasury bonds.
- Imposes monthly audits, public reporting, and prohibits paying interest on stablecoins.
- Non-compliant stablecoins cannot be offered on U.S. exchanges, although they can be used peer-to-peer or in personal wallets.
📈 Is it favorable for traders?
✅ Advantages
- Greater trust and legitimacy: Regulated stablecoins will be safer, potentially attracting institutional capital.
- Lower risk of collapse: By requiring full backing and audits, the risk of failures like Terra/LUNA is reduced.
- Market stability: A clear framework may reduce volatility and encourage widespread adoption.
❌ Disadvantages
- Less diversity of stablecoins: Only a few will meet the requirements, which could limit trading options.
- Restrictions for foreign issuers: Stablecoins like Tether (USDT) could be excluded if they do not adapt.
- Greater centralization: The law favors banks and large corporations, which could go against the decentralized philosophy of crypto.
#LeyGENIUS #AltcoinSeasonLoading What do you all think about all this?
I READ IT !