🚨LAST MINUTE: THE U.S. HOUSE OF REPRESENTATIVES APPROVES THE GENIUS ACT.

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) represents a profound change in the crypto ecosystem, especially for traders, stablecoin issuers, and platforms like Binance. Here’s a clear and straightforward analysis of its impact:

⚖️ What does the GENIUS Act propose?

- Strict federal regulation for dollar-pegged stablecoins.

- Only approved financial entities (banks, federally or state-licensed issuers) will be allowed to issue stablecoins.

- Requires 1:1 backing in liquid assets such as cash or Treasury bonds.

- Imposes monthly audits, public reporting, and prohibits paying interest on stablecoins.

- Non-compliant stablecoins cannot be offered on U.S. exchanges, although they can be used peer-to-peer or in personal wallets.

📈 Is it favorable for traders?

✅ Advantages

- Greater trust and legitimacy: Regulated stablecoins will be safer, potentially attracting institutional capital.

- Lower risk of collapse: By requiring full backing and audits, the risk of failures like Terra/LUNA is reduced.

- Market stability: A clear framework may reduce volatility and encourage widespread adoption.

❌ Disadvantages

- Less diversity of stablecoins: Only a few will meet the requirements, which could limit trading options.

- Restrictions for foreign issuers: Stablecoins like Tether (USDT) could be excluded if they do not adapt.

- Greater centralization: The law favors banks and large corporations, which could go against the decentralized philosophy of crypto.

#LeyGENIUS #AltcoinSeasonLoading

What do you all think about all this?

I READ IT !