The U.S. Senate has approved the "Genius" law by a majority, marking the first major law to officially regulate stablecoins in America. If this law becomes actual legislation, it will be a significant turning point in the crypto market.
The law requires any entity issuing a stablecoin to have a 100% cash reserve, meaning every dollar in the currency must be backed by a real dollar or liquid asset in return. They must also disclose their reserves monthly and comply with anti-money laundering laws.
This means greater transparency and trust, especially from institutions and banks that have been hesitant to enter the market. Circle, which is behind USDC, will benefit greatly, but Tether USDT will face greater pressure due to its lack of disclosures.
So, what role will stablecoins play? Simply put, they are the bridge between blockchain and traditional money.
✅ They will make transfers faster and cheaper
✅ They provide stability in trading compared to currencies like Bitcoin
✅ They open up huge opportunities in DeFi
✅ And they help people in countries with high inflation like Egypt
This is in addition to the fact that banks may also enter and issue their own stable digital currencies, which will open the door to broader competition and regulation.
If this law passes in the House of Representatives, it will usher us into an important era for stablecoins, making them a fundamental part of the global financial system. Stay tuned for developments, because this is not just a law; it is a reshaping of the market. 💥
