GENIUS Law: Strong Movements in the Cryptocurrency Market in the U.S.
Introduction to the GENIUS Law and its implications
In the context of U.S. politics turning towards a more cryptocurrency-friendly direction, the GENIUS law is becoming a hot topic. This law aims to regulate the stablecoin market, a segment that dominates a market share worth over $261 billion, with stablecoins like USDT, USDC, and USDS. The enactment of this law promises to open a new milestone in the legal corridor, thereby promoting wider adoption in the U.S.
The main features of the GENIUS law
The GENIUS law sets strict regulations for stablecoin issuers. This includes:
Licensing: All issuers must have a license from federal or state regulatory authorities.
Safe reserve certification: Stablecoins must be backed 1:1 by cash or U.S. government bonds.
Monthly reserve reporting: Issuers must publicly disclose detailed reserve data periodically.
AML & KYC compliance: Must adhere to full anti-money laundering procedures and customer identity verification.
No political affiliations: Issuers must not be connected to or influenced by political organizations.
However, there are still many concerns about the links of organizations like World Liberty Finance, which may have ties to the Trump family, causing controversy during the drafting of this law.
Analyzing the potential of the GENIUS law to increase the status of U.S. stablecoins
According to experts like Quinten, the GENIUS law provides a clear legal framework that allows banks and large corporations to confidently issue digital dollars. This could encourage the emergence of many new issuers, enhancing the expansion of stablecoins in both domestic and international markets.
The impact of the GENIUS law on the U.S. cryptocurrency market
This law is expected to drive acceptance among major organizations like Amazon, Apple, Walmart, and JP Morgan. These companies have started preparing to enter the stablecoin market, removing legal barriers and expanding operations based on blockchain technology.
Challenges to decentralized stablecoins
While the Genesis law encourages stablecoins from large organizations, it also carries the risk of undermining decentralized projects:
Prohibit unlicensed activities in the U.S.
The government has the right to freeze stablecoin assets at will.
Severe penalties: Five years in prison or fines of up to $1 million per day for violations.
Experts warn that this tightening campaign could push decentralized and international stablecoins completely out of the U.S. market, significantly impacting the diversity and sustainability of the cryptocurrency market.
Does the GENIUS law open a new era for U.S. cryptocurrency?
The GENIUS law defines a clear direction for the U.S. towards a more tightly controlled digital economy. While opening opportunities for corporate stablecoins, it also poses risks of limiting innovation for decentralized projects. This policy could help the U.S. lead the world in developing controlled digital assets, but it also raises questions about the balance between law and creative freedom in the cryptocurrency sector.
Source: https://tintucbitcoin.com/luat-trump-co-the-de-doa-stablecoin/
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