#USStablecoinBill 🌱🍀 #USStablecoinBill Regulatory uncertainty: Is this the end of stablecoins in the U.S.?

The GENIUS bill on stablecoins in the U.S. Senate faces an uncertain future, according to Timothy Massad, Howell E. Jackson, and Dan Awrey, experts in digital asset policy. Although it initially garnered bipartisan support, nine pro-crypto Democrats, including four who backed the proposal, have withdrawn their support, citing risks to national security and deficiencies in anti-money laundering measures. This turn deepens regulatory uncertainty, a key obstacle to innovation in the stablecoin sector.

Massad, Jackson, and Awrey warn that without a clear regulatory framework, companies like Tether and Circle could face challenges operating in the U.S. This could push innovation towards jurisdictions with more defined rules, such as the European Union or Singapore, weakening U.S. financial leadership. Stablecoins, crucial for payments and DeFi, have a market of $230 billion, but the lack of clear regulation threatens their growth.

User confidence is also at stake, the authors emphasize. Without strong regulations, institutional investors seeking stability may shy away, limiting the adoption of these currencies. Furthermore, the absence of a clear framework increases the risks of illicit uses, such as money laundering, which concerns lawmakers.

For experts, the U.S. must act quickly to avoid losing ground to other economies.