The GENIUS Act is preparing for a final vote in the Senate before moving to the U.S. House of Representatives.
JP Morgan files to trademark stablecoin ‘JPMD’, signaling fierce competition ahead in the US.
The stablecoin bill, also known as the Securing National Innovation with Stablecoins of the United States (GENIUS) Act, will enter the Senate final stage on June 17. This event is a landmark event for the cryptocurrency sector in the United States.
After passing the Senate, the bill will move to the House of Representatives for consideration before the president makes the final decision to make the bill an official law.
Source: Senate Cloakroom/X
The main goal of the bill is to provide a clear legal framework for ‘payment stablecoins’ or digital dollars, balancing innovation and consumer protection.
JP Morgan reshapes the stablecoin race in the US
During the campaign to gain support from his colleagues, Senator Bill Hagerty, the bill's sponsor, said:
“The GENIUS Act will bring the U.S. payments system into the 21st century. Let's make history together.”
The key amendments in this bill relate to consumer protection, bankruptcy and industry ethics.
Nate Geraci from ETF Store commented that Ethereum (ETH) will be the direct beneficiary of its stablecoin supply dominance, commenting:
“The US Senate may pass stablecoin legislation tomorrow, but most still don't really know what ether is… It's too early.”
The sentiment revolves around the dominant role of the Ethereum blockchain in the stablecoin space, with the network accounting for 50% of the $250 billion stablecoin market, with TRON (TRX) following closely behind at 31%.
Source: DeFiLlama
Many experts believe that before Circle (CRCL) shares went public, ETH was the starting point for indirect investment in the stablecoin craze.
Despite this, top ETH traders on Binance remain bullish, but the proportion of long positions has dropped from 76% to 74%. This move may reflect a strategic reorganization due to the Israeli-Iranian geopolitical turmoil, not directly related to the GENIUS Act process.
Source: CoinGlass
Among the leading stablecoins, Tether (USDT) dominates with a market capitalization of nearly $155 billion.
In second place, Circle’s USDC is worth $61 billion. Circle’s IPO was a huge success, the stablecoin craze was just starting to take off. CRCL went from $31 to $165, recording a return of over 400% for shareholders.
Traditional financial giants are not slow to follow, JP Morgan Chase has just filed for the trademark ‘JPMD’ for its stablecoin, signaling competition on this new front.
Arthur Hayes, founder of BitMEX, said that CRCL is ‘overvalued’, but also stressed:
“The CRCL listing is just the beginning, not the end, of this stablecoin craze. The bubble will burst when a stablecoin issuer goes public on a stock exchange – most likely in the US.”
According to Hayes, Tether has a much stronger network effect than Circle, preserving its position in the Global South regions.
In other words, the founder predicts that CRCL's rally and the associated stablecoin boom could lose steam as giants like JP Morgan launch their own stablecoins.
Source: https://tintucbitcoin.com/cuoc-dua-stablecoin-2024-genius-vs-jp-morgan/
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