Stablecoins Face US Clampdown: What the GENIUS Act Means for Crypto’s $260 Billion Cornerstone
🪙 What Are #Stablecoins ?
Digital assets pegged to fiat currencies (mostly the US dollar).
Used for transferring and storing value within the crypto world, not for everyday purchases.
Backed by reserves (cash, Treasury bills, etc.) or algorithms (which are riskier).
💼 Big Players in the Market
Tether (#USDT ) and Circle (#USDC ) dominate over 80% of the market.
PayPal and Trump-backed USD1 entered the space recently.
USD1 has attracted controversy due to potential conflict of interest and rapid adoption.
🧨 Why Regulators Are Worried
Stablecoin issuers lack banking-level oversight.
Sudden collapses (like TerraUSD in 2022) can destabilize markets.
Growing use by criminal groups for illicit transactions due to anonymity and low fees.
🧠 The Genius Act (July 2025)
Expands federal control over stablecoin issuers.
Requires monthly audits and low-risk reserve assets.
Mandates anti-money laundering compliance and suspicious activity monitoring.
Lets authorities freeze assets under legal orders.
#TRUMP #StablecoinLaw $BTC
$BNB
$USDC
