The GENIUS Act is regarded by Mastercard as a significant turning point in stablecoin management and promoting the integration of digital assets.
This act allows banks and licensed businesses to issue stablecoins linked to the USD while imposing strict reserve and compliance requirements to create a transparent and safe environment for cryptocurrencies.
MAIN CONTENT
Mastercard is ready for the stablecoin regulatory framework with its technical platform and strategic partnerships.
The GENIUS Act has been praised for its legal clarity but also raised controversies regarding user protection and its impact on the traditional financial system.
Concerns surround the actual impact of stablecoins on transaction fees and the proliferation of various stablecoins in the market.
How does Mastercard view the GENIUS Act?
Jesse McWaters – Global Policy Director at Mastercard confirmed that the company has been preparing for years to embrace the new stablecoin regulatory framework while collaborating extensively with both the traditional finance and cryptocurrency sectors to enhance stablecoin-based payment infrastructure.
Mastercard invests in systems like the Mastercard Multi-Token Network and the Crypto Credential platform to control payment processes, enhance security, and ensure regulatory compliance while maintaining the flexible programmability characteristics of stablecoins.
Stablecoin regulation under the GENIUS Act marks a pivotal moment for institutional engagement and regulatory clarity in digital assets.
Jesse McWaters, Global Policy Director at Mastercard, 2025
What are the pros and cons of the GENIUS Act according to experts?
Summer Mersinger – CEO of Blockchain Association views the GENIUS Act as a step forward in clarifying regulations, encouraging innovation, and enhancing the USD's position in digital finance.
In contrast, Corey Frayer – Director of Investor Protection at the Consumer Federation of America believes that this law could weaken consumer protections by allowing stablecoin issuers to operate with less oversight than traditional banks, posing historical risks.
He pointed out that the use of unsecured stablecoins is like depositing money in a bank due to the lack of deposit insurance and accompanying consumer rights, creating long-term concerns about financial safety.
The GENIUS Act allows stablecoin issuers to bypass traditional banking protections, exposing consumers to risks without federal safeguards.
Corey Frayer, Director of Investor Protection at the Consumer Federation of America, 2025
How might the GENIUS Act affect transaction fees and the popularity of stablecoins?
Many companies believe that stablecoins will be adopted to reduce merchant fees when processing credit card transactions or simplify international currency conversions. However, there are still doubts about whether stablecoins can truly reduce backend operational costs.
Moreover, allowing multiple companies to issue separate stablecoins could expose users to various currencies at retail points, creating complexity and increased security risks. The need to establish personal digital wallets may also pose challenges and concerns about cybersecurity.
What plans do major businesses have with stablecoins after the GENIUS Act?
In addition to Mastercard, many corporations such as Amazon, Apple, JPMorgan, Citigroup, and Bank of America have shown interest or are preparing to invest in stablecoins. Some banks are even discussing partnerships with Zelle to issue a common stablecoin, indicating a growing trend of cryptocurrency adoption in the mainstream financial system.
Frequently Asked Questions
What is the GENIUS Act and how does it affect stablecoins?
The GENIUS Act is a law that allows banks and licensed businesses to issue stablecoins linked to the USD, providing clear regulation and enhancing security for cryptocurrencies.
How has Mastercard prepared for stablecoins under the GENIUS Act?
Mastercard has built the technical platform, strategic partnerships, and enhanced infrastructure to control payments, ensure compliance, and develop safe stablecoins.
What is the biggest concern about the GENIUS Act?
The main concern is that stablecoins may lack user protections compared to traditional banks while expanding risks due to less oversight with the increased number of stablecoins.
Can the GENIUS Act reduce transaction fees for businesses?
Many companies expect stablecoins to reduce merchant fees and simplify currency conversion, but it remains unclear whether they will be effective enough to lower overall operational costs.
What plans do large corporations currently have with stablecoins?
Not only Mastercard, but Amazon, Apple, and several major banks are considering or implementing investments and integrating stablecoins to capitalize on opportunities in the cryptocurrency market.
Source: https://tintucbitcoin.com/mastercard-genius-act-mo-duong-stablecoin/
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