The U.S. is currently engaged in a number of geo-political and economic initiatives that are shaking up the global economy like few non-wartime events have in recent memory. A core pillar of U.S. economic leadership leveraged by governments now and in the past is the status of the dollar as the global reserve currency. While there are pros and cons to serving as the global reserve currency – the complexities of which are complicating the translations of simplistic slogans into reality – the fact remains that dollar leadership is an important part of U.S. statecraft, diplomacy, and economic negotiation. Stablecoin legislation and efforts and both the federal and state level are pushing the debates around stablecoins from the back burner to the front burner, but the true implications of increased stablecoin utilization are just beginning to be understood by the wider markets.

Specifically, the passage of the GENIUS Act on March 13 by the Senate Banking Committee has set clear rules for dollar-backed stablecoins. This much needed clarification also has the potential to prevent or at least mitigate the potential for other forms of stablecoins that proved to be more volatile than advertised. Additionally, the fact that legislation is moving forward at the U.S. level and has the support of the administration has accelerated the developed of stablecoin attestation and auditing standards. With virtually all of the over $200 billion stablecoin market comprised of dollar-backed stablecoins, including USDT that still raises questions around the status of reserves, clearer legislation is an imperative.#USDT #BTCtrade