#GENIUSAct
GENIUS Act and Its Effect on the Crypto Market:
Overview: The GENIUS (Guarding Emerging Networks and Infrastructure of U.S.) Act is a U.S. legislative proposal aimed at tightening oversight of emerging technologies, including blockchain and cryptocurrency.
Objective: It focuses on protecting national security by regulating digital assets, AI systems, and decentralized finance (DeFi) platforms.
Crypto Impact:
Increased Scrutiny: Exchanges and projects dealing with U.S. users may face tougher compliance requirements.
KYC/AML Enforcement: Mandatory Know-Your-Customer (KYC) protocols across DeFi platforms may become standard.
Stablecoin Regulation: Stricter rules on USD-backed stablecoins could reduce their market flexibility.
Innovation vs. Regulation: While aiming for security, the Act could stifle innovation due to overregulation.
Market Sentiment: Short-term uncertainty may cause volatility, but long-term clarity could attract institutional players.
