The GENIUS Act is the latest signal from the U.S. Congress regarding stablecoins: not opposed, but to be regulated. It is not a 'stablecoin killer' that stifles innovation, but rather a 'compliance fast track' that paves the way for traditional institutions.
For investors, this means that large institutional funds are expected to enter the market more confidently; for issuers, only banks can issue and reserve 100%, and they must also accept regulation, which directly compresses the space for DeFi-native stablecoins. Models like Terra and Frax are seen as high risk in the eyes of GENIUS.
In summary: GENIUS protects the compliant version of the U.S. dollar stablecoin, potentially sacrificing the space for innovation and decentralization.
