According to PANews, the U.S. Senate Banking Committee has approved the GENIUS Act, a bill aimed at regulating stablecoin issuers. This legislation is designed to facilitate the use of stablecoins as a payment method beyond the cryptocurrency trading sector. However, the bill has raised concerns about the potential privatization of the U.S. dollar and an increased risk of de-dollarization.
The GENIUS Act permits stablecoin issuers to operate without the same federal consumer financial protection measures that apply to credit card and peer-to-peer payment platforms. Additionally, it allows these issuers to invest in money market funds, repurchase agreements, and uninsured bank deposits. These assets have previously received bailouts during financial crises, which could indirectly impact the U.S. dollar.
Data indicates that the proportion of the U.S. dollar in global foreign exchange reserves has decreased from over 70% at the beginning of the 21st century to below 60%.