US Senate passes the GENIUS Act: New standards for cryptocurrency-based stablecoins The first law requiring stablecoin issuers to comply with government regulations
On February 4, 2025, the US Senate approved the GENIUS Act—a legal turning point in the cryptocurrency industry. This act requires stablecoin issuers, especially those based on the US dollar, to comply with processes from the Treasury Department and law enforcement agencies. This is the first time the country has established clear standards to control stablecoins, regarding registration, monitoring, and handling emergencies, to prevent money laundering activities and sanctions evasion.
Stablecoins like banks: Stricter legal standards
The law requires stablecoin issuers to register as banks under the Bank Secrecy Act. These companies must conduct customer identity checks, monitor large transactions, and have the ability to freeze or destroy wallets by legal order. This is particularly important for fiat-pegged stablecoins like the US dollar, often used to maintain value in cross-border transactions, sustaining the trust of the investor community and international businesses.
The expanded role of the Treasury in monitoring stablecoins
The Senate also empowered Treasury Secretary Scott Bessent to collaborate with legitimate stablecoin issuers to monitor and control transactions involving foreign partners. This is to ensure that stablecoins are not used to evade US sanctions or launder money. Issuers must conduct identity checks on significant users and have the ability to monitor each standard wallet, as well as prevent illegal activities in the global cryptocurrency ecosystem.
New anti-money laundering control policies from the US government
Regulating stablecoin issuers as financial institutions has allowed the Department of the Treasury and the Department of Justice to have additional tools to apprehend criminals. Previously, stablecoins had been linked to many major lawsuits, and this new law aims to limit fraudulent activities, avoid sanctions evasion, while promoting transparency and safety for the national cryptocurrency system.
Impact on the global cryptocurrency market and the US dollar
According to Scott Bessent, stablecoins could reach a market value of up to $3.7 trillion by the end of this decade. Clear regulations enhance demand for stablecoins backed by US government debt, such as Treasury bonds, stimulating buy-in demand and reducing national borrowing costs. This can alleviate the burden of public debt while further promoting the development of a cryptocurrency ecosystem based on the US dollar, expanding a safer and more transparent cross-border payment system.
This law also creates opportunities to promote the internationalization of the US dollar in the cryptocurrency market, leading to an increase in the demand for crypto directly linked to national assets. The US government expects that through strict control measures, the country will maintain its dominant position in the global stablecoin market share, develop a healthy ecosystem, and prevent risks related to money laundering, tax evasion, and cross-border financial crime.
Source: https://tintucbitcoin.com/luat-genius-quy-dinh-stablecoin-moi/
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