Genius Act has major implications for USDC, USDT

The GENIUS Act, another core piece of legislation, is expected to significantly impact leading stablecoins, including USDC and USDT. According to Greg Magadini, the Act’s transparency requirements could benefit USDC, which stands to gain market share from USDT. In addition, stablecoin regulation is likely to influence government debt markets.

“One of the main elements of the Genius Act is the requirement for stablecoins to be backed 1-to-1 by highly liquid reserves (think US Treasury bills). This creates an implicit partnership with the US government,” Magadini explained.

Still, the bill’s most transformative effect may be in how it opens the door for traditional financial institutions to safely engage with DeFi, said Eli Cohen, General Counsel at Centrifuge. This shift could unlock major opportunities for financial innovation and deliver a meaningful boost to the real-world asset (RWA) market.