The GENIUS Act ensures that big tech and banks cannot easily dominate the stablecoin market without facing legal barriers and strict structures.
The GENIUS Act is designed to prevent the dominance of large tech corporations and banks in the stablecoin industry, creating a level playing field with tighter regulations.
MAIN CONTENT
The GENIUS Act imposes strict legal barriers for tech corporations and banks participating in the stablecoin market.
The main goal of the act is to ensure fair competition and minimize concentration risks in the cryptocurrency market.
Circle's head, Dante Disparte, highly appreciates the effectiveness of the act in protecting the stablecoin market.
What is the GENIUS Act and what role does it play in the stablecoin market?
Dante Disparte, Chief Strategy Officer of Circle, emphasized that the GENIUS Act prevents large tech companies and banks from dominating the stablecoin market by imposing strict regulatory processes and legal requirements.
The GENIUS Act serves as a legal framework to control the development and operation of stablecoins, thereby protecting users and maintaining a balance of power in the potential and volatile cryptocurrency market.
Why are tech companies and banks facing tighter regulations in the stablecoin market?
According to Dante Disparte, tech corporations and banks have significant influence on the stablecoin market; therefore, the GENIUS Act establishes strict regulations to limit dominance and protect liquidity and system safety.
This regulation helps avoid excessive concentration risks and protects financial stability in the cryptocurrency ecosystem – which is extremely important in the context of stablecoins being widely used in payments and DeFi.
The GENIUS Act is not only a legal measure but also lays the foundation for a more competitive and transparent stablecoin market, effectively minimizing systemic risks.
Dante Disparte, Chief Strategy Officer of Circle, 2024
How does the GENIUS Act impact the structure and operation processes of stablecoins?
According to expert Dante Disparte, the act requires stablecoin issuing organizations to comply with regulations on governance, security, auditing, and transparency to build trust and enhance reliability from users.
The GENIUS Act encourages organizations to develop strict internal processes, thereby minimizing the risk of fraud, liquidity risks, and price manipulation in the market. This is a crucial requirement in promoting the sustainable development of stablecoins in the global market.
What are the real-world examples of the impact of the GENIUS Act on the stablecoin market today?
At Circle, strong support for the GENIUS Act is reflected in the implementation of transparent governance solutions and high-security measures for the USDC – the leading stablecoin today with a market capitalization of tens of billions of USD. The act helps them reinforce their position and user trust.
Financial industry reports also indicate that after the GENIUS Act took effect, some large organizations have increased investments in legal and auditing departments, while also improving stablecoin issuance processes to meet new standards.
Frequently Asked Questions about the GENIUS Act and the stablecoin market
Is the GENIUS Act mandatory for all stablecoins?
The GENIUS Act targets stablecoin issuers from large tech corporations and banks to control concentration risks, not every small stablecoin.
What are the main benefits of the GENIUS Act for stablecoin users?
The act helps increase transparency, safety, and fairness in the stablecoin market, protecting users from manipulation risks and asset losses.
How does the GENIUS Act affect the global cryptocurrency market?
The GENIUS Act contributes to establishing governance and legal standards, thereby promoting healthy and stable development of the entire international cryptocurrency market.
Will the GENIUS Act slow down the development speed of new stablecoins?
The act requires investment in legal compliance, which may slow down the launch process of stablecoins but ultimately builds a more sustainable and secure foundation.
How does Circle assess the long-term impact of the GENIUS Act?
Circle believes that the GENIUS Act is an important step in the stablecoin regulatory environment, helping to enhance trust and sustainability across the entire cryptocurrency ecosystem.
Source: https://tintucbitcoin.com/circle-khang-dinh-genius-act-ngan-thong-tri/
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