The President of the United States has officially signed the GENIUS Act, the first federal law regulating stablecoins.
The GENIUS Act creates a transparent legal framework, helping to harness the enormous potential of US dollar-backed stablecoins, regarded as a revolutionary step in financial technology.
MAIN CONTENT
The GENIUS Act is the first federal law regulating stablecoins in the United States.
The President of the United States emphasizes that this is a major turning point for the fintech sector.
The new legal framework helps develop and stabilize the stablecoin ecosystem.
What is the GENIUS Act and what does it mean?
The GENIUS Act is the first federal legal document focusing on regulating stablecoins in the United States, signed into law by the President in July 2023. This is an important step to enhance the transparency and stability of stablecoins, while promoting the development of DeFi and financial technology.
Experts believe this legal framework will facilitate stablecoin issuers while protecting consumers and investors from financial risks.
How does the President of the United States evaluate the GENIUS Act?
The President of the United States asserts that the GENIUS Act opens a new era for stablecoins, a revolution in the financial technology sector since the advent of the Internet. He emphasizes that this law will establish a clear legal framework to harness the potential of stablecoins based on the US dollar.
The GENIUS Act creates a clear and concise regulatory framework that unlocks the enormous potential of stablecoins using the US dollar. This could be the biggest revolution in fintech since the emergence of the Internet.
Donald Trump, President of the United States, at the signing ceremony of the GENIUS Act, July 2023.
How does the legal framework of the GENIUS Act affect the stablecoin market?
The regulatory framework in the GENIUS Act establishes standards for the issuance, operation, and oversight of stablecoins, contributing to increased transparency and safety. This is expected to attract more investors and businesses to the stablecoin sector while minimizing risks of fraud and price volatility.
According to a Bloomberg report, this law will help the stablecoin market develop more sustainably, strengthening user trust in cryptocurrencies tied to the US dollar.
What challenges may arise when implementing the GENIUS Act?
Some experts warn that stablecoin issuers may struggle to comply with the new reporting and control regulations. This requires organizations to invest more in legal systems and risk management.
Moreover, the balance between control and creative development is also a major challenge for lawmakers to avoid slowing the progress of fintech.
What notable regulations are included in the GENIUS Act?
The Act clearly stipulates the use of the US dollar as collateral for stablecoins, periodic audits, and transparency in issuance information. Additionally, the law requires organizations to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
Frequently Asked Questions
How does the GENIUS Act affect stablecoin users?
The Act enhances transparency and safety for users, helping them feel more secure in their transactions and investments in stablecoins.
How are stablecoins secured in the new legal framework?
The law requires stablecoins to be backed by US dollars, with periodic audits and strict oversight measures.
Will the new legal framework help develop financial technology?
The legal framework creates clear legal conditions, fostering innovation and enhancing market trust in fintech.
What requirements must stablecoin issuers meet?
Must comply with regulations regarding collateral assets, transparency in reporting, and adherence to AML and CFT as per federal regulations.
Does the GENIUS Act apply to all types of stablecoins?
The law primarily regulates USD-based stablecoins, helping to standardize and stabilize the domestic stablecoin market.
Source: https://tintucbitcoin.com/tong-thong-trump-ky-ban-hanh-genius-act-2/
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