🔥 GENIUS Act Targets Stablecoin Power Grab—Big Tech & Wall Street on Notice! ⚡🪙

Circle Chief Strategy Officer Dante Disparte says a crucial feature in the newly approved GENIUS Act intends to limit tech giants and significant financial institutions' involvement in the U.S. stablecoin industry.

Big Tech and banks cannot dominate the stablecoin market under the GENIUS Act.

Traditional banks and non-banks must form distinct stablecoin companies.

A prohibition on yield-bearing stablecoins may attract institutional investors to DeFi.

Disparte called the proposal the "Libra clause," after Meta's failed worldwide digital currency launch, on the Unchained podcast.

Any non-bank firm wanting to create a dollar-backed stablecoin must establish an independent operation to pass antitrust examination and get approval from a Treasury-led oversight body with veto power.

The GENIUS Act restricts banks' stablecoin issuance.
Traditional banks face constraints too. Stablecoin lenders must issue via legal subsidiaries.

These organizations cannot leverage, lend, or carry risk, creating a ringfenced structure Disparte called “more conservative” than JPMorgan deposit-token plans.

“It creates clear rules that I think in the end the biggest winners are US consumers and market participants, and frankly, the dollar,” Disparte said.

The House approved the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) with bipartisan support from over 100 Democrats.

Disparte thinks the law gives long-awaited legal clarification, legitimizing crypto companies and providing the dollar a regulatory advantage in the global digital currency competition.

Still, not everyone celebrates. Critics say prohibiting yield-bearing stablecoins might hinder innovation and drive consumers to overseas sites. After the stablecoin layer is safe, Disparte believes yield should go to DeFi.

The yield prohibition may increase institutional interest in DeFi platforms, notably Ethereum, which leads in total value frozen.

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