What would happen if the U.S. Congress approved the Genius Act?

Here's a comprehensive look at what might happen if the U.S. Congress passes the "GENIUS Act" to regulate stablecoins

✅ What is the GENIUS Act?

Law name: Guiding and Establishing National Innovation for U.S. Stablecoins Act.

It aims to regulate stablecoins like USDC and USDT and link them to a fixed reserve mechanism (dollar or short-term bonds) at a 1:1 ratio.

It requires issuers to disclose reserves monthly and undergo annual audits if the value of the currency exceeds $50 billion.

🏦 Potential implications:

1. Enhanced trust and widespread adoption

By providing regulatory clarity, the stablecoin market is likely to grow to $2–3 trillion over the decade.

The influx of institutional players such as banks, major merchants like Visa and Mastercard, and Amazon may increase.

2. Consumer protection and financial security

Priority is given to currency holders in case of issuer bankruptcy.

Prohibiting claims that they are guaranteed by the government or by insurance institutions like the FDIC.

Strict requirements against money laundering and restrictions on transactions with startups.

3. Increased activity in the U.S. bond market

Due to the mandatory holding of treasury bonds, demand for short-term treasury bonds may rise.

This could impact the financial market and the government's profit stability.

4. Balance between governance and political concerns

Members of Congress and executive staff are prohibited from issuing