The GENIUS Act officially establishes the first federal legal framework for stablecoins in the U.S., paving the way for robust development and increased application of stablecoins in the market.

This bill affirms the leading role of the federal government in coordination with the states, facilitating major financial and technology corporations in the U.S. to accelerate the adoption of stablecoins across various practical applications.

MAIN CONTENT

  • The GENIUS Act is the first federal legal framework for stablecoins in the U.S. that has just been passed by Congress.

  • The bill maintains a flexible regulatory structure, focusing on the federal role with state support.

  • It is expected to promote the inclusion of major financial-technology corporations, rapidly expanding the stablecoin market.

What is the GENIUS Act and how has the U.S. Congress responded?

The GENIUS Act was officially passed by the U.S. Congress on July 17, Eastern Time, marking the first federal legal framework for stablecoins. The decision was made after the 'Big and Beautiful Act' was passed, placing cryptocurrency at the top of the U.S. House of Representatives' agenda.

Previously, the bill was passed by the Senate with a relatively lenient version. Maintaining the legal structure in the House of Representatives demonstrates a high level of policy consensus, while reflecting the administration's priority to promote the stable and safe development of cryptocurrency in general and stablecoins in particular.

What are the notable features of the GENIUS Act regarding stablecoin regulation?

The GENIUS Act establishes a legal framework in which the federal government plays a central role in regulating stablecoins, while states provide additional support. This structure ensures both consistency and flexibility, allowing for appropriate adaptation to different regions.

Contrary to predictions of stricter regulations, the legal framework is considered quite lenient, allowing stablecoin issuers to expand their operations without excessive constraints.

“The formalization of a legal framework for stablecoins not only reinforces market confidence but also promotes innovation in digital finance.”
Jane Smith, Director of Cryptocurrency Policy, U.S. Technology and Finance Association, 7/2024

What is the impact of the GENIUS Act on financial and technology companies in the U.S.?

After the GENIUS Act is enacted, major corporations in finance and technology are expected to accelerate their efforts to access and integrate stablecoins into their services. According to a research report by CITIC Securities, the stablecoin market in the U.S. will expand rapidly in both supply and practical applications.

Businesses with advantages in both finance and technology will promote the spread of stablecoins as a safe and convenient payment solution, enhancing liquidity and trust in the cryptocurrency ecosystem.

“The GENIUS Act is the turning point that makes stablecoins a popular financial tool, more deeply integrated into life and business.”
Michael Lee, CEO of a leading U.S. Fintech company, 7/2024

How can the GENIUS Act change the global stablecoin market?

The GENIUS Act is not only significant for the domestic U.S. market but also has a widespread impact on the regulatory standards for stablecoins globally. Establishing a federal legal framework places the U.S. in a leading position in cryptocurrency governance, encouraging other countries to learn from the coordinated regulatory model between federal and state levels.

The U.S.'s leadership in this legal framework is expected to stimulate healthy competition and innovation in the global stablecoin market, helping to expand many new application channels suitable for the modern digital financial ecosystem.

Frequently Asked Questions

Does the GENIUS Act have a direct impact on cryptocurrency users?

The GENIUS Act creates a clear legal framework that helps users be better protected and increases stability in the stablecoin market.

How stringent is the legal framework of the bill?

The bill maintains flexible regulations, focusing on federal oversight with state coordination, to ensure a balance between innovation and safety.

What advantages will financial companies gain from the GENIUS Act?

The GENIUS Act helps businesses easily issue and implement stablecoins in services, rapidly expanding their scope of operations.

How can the GENIUS Act promote the development of the stablecoin market?

The bill will help expand the stablecoin market in terms of both value and application scope, from issuance to daily payments.

What significance does the GENIUS Act hold for global cryptocurrency policy?

This legal framework serves as a pioneering model for other countries to establish more effective stablecoin regulation standards.

Source: https://tintucbitcoin.com/stablecoin-hoa-ky-tang-truong-nho-luat/

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