The three pieces of legislation passed during the U.S. 'Cryptocurrency Week' mark a substantial establishment of the cryptocurrency regulatory framework, opening a new era of global cryptocurrency legislation and profoundly influencing the direction of the industry.
'Guidance and Establishment of the National Stablecoin Innovation Act' ('Genius Act') requires stablecoin issuers to obtain federal or state-level licenses, to hold reserves in a 1:1 ratio of U.S. dollar cash, bank deposits, or short-term U.S. Treasury bonds, enhancing the safety of funds, incorporating digital assets into the U.S. sovereign credit system, consolidating the dollar's dominance in the digital age, creating demand for U.S. debt, and helping to alleviate the debt crisis.
'Digital Asset Market Clarity Act' ('Clarity Act') clarifies the commodity nature of cryptocurrencies, delineates the regulatory division between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), weakens SEC regulatory power, and provides clear rules for the cryptocurrency market.
'Anti-Central Bank Digital Currency Monitoring National Act' ('Anti-CBDC Act') prohibits the Federal Reserve from issuing retail central bank digital currency without authorization, protects citizens' privacy and financial freedom, and constructs a 'protective wall' for cryptocurrencies.
The passage of these three bills enhances the legitimacy of the cryptocurrency market, boosts investor confidence, drives up prices, and leads to a collective surge in cryptocurrencies. It also prompts changes in the competitive landscape of the industry, where compliance costs eliminate smaller issuers, potentially allowing giants to dominate the market. The global regulatory wave resonates, with countries accelerating the improvement of regulatory frameworks, leading the industry into a golden age of compliance, likely attracting more traditional capital into the market and promoting the integration of cryptocurrencies into the mainstream financial system. $SUI
