$BTC $ETH $BNB #IsraelIranConflict #DAOBaseAIBinanceTGE #FOMCMeeting #SparkBinanceHODLerAirdrop #BombieBinanceTGE After months of debate, the U.S. Senate officially passed the GENIUS Act on Tuesday afternoon (June 18), marking an important milestone in establishing a legal framework for stablecoins in the U.S.

Why is this big news?

  • Stablecoins (USDT, USDC, Dai...) are a "bridge" between cryptocurrencies and the traditional financial system, often pegged at a 1:1 ratio with the USD.

  • Leading corporations like Walmart, Amazon, and many major banks are planning to issue their own stablecoins to optimize payment costs and benefit from interest rates.

  • This bill could pave the way for trillions of USD from Wall Street to flow into the crypto market.

Economic - political impact

  1. Strengthening the USD position:

    • U.S. Treasury Secretary Scott Bessent emphasized: "Stablecoins will drive demand for U.S. government bonds (which are used as reserves for stablecoins), thereby reducing national borrowing costs."

  2. Victory for the crypto industry:

    • Liat Shetret (Elliptic): "This is a historic step for the U.S. to lead in digital asset management."

    • Amanda Tuminelli (DeFi Education Fund): "A victory for America, for innovation, and for legal transparency."

The next steps

  • The bill needs to be passed by the House before being presented to President Donald Trump for signing into law.

  • However, the House is working on its own stablecoin bill and may want to combine it with the crypto market structure bill to increase the chances of passing.

  • Senator Cynthia Lummis (Republican) urged: "This is just the first step. Congress must pass comprehensive crypto market legislation before 2025."

Political shadows

  • Last month, the bill nearly failed due to some Democrats withdrawing support, citing concerns over conflicts of interest from the Trump family's crypto businesses.

  • Although a clause on financial transparency has been added, GENIUS still allows the president, vice president, and their families to conduct stablecoin business while in office.

  • USD1 (stablecoin of World Liberty Financial - a platform backed by the Trump family) is currently the 8th largest stablecoin in the world.

Forecast: If it becomes law, GENIUS will open the floodgates for enterprise/institution-issued stablecoins (I-Stablecoin), turning the U.S. into a global digital currency hub.

(Updated at 19:00 EST, June 18, 2024 | Source: Decrypt, CoinGecko)