#BigTechStablecoin
The GENIUS Act, short for "Guarding for Emerging Non-issued United States Stablecoins Act," aims to regulate stablecoin issuance in the US, specifically targeting Big Tech companies. Here's what you need to know ¹:
Key Provisions of the GENIUS Act
- *Ban on Big Tech Issuance*: The act prohibits Big Tech companies, like Meta, Amazon, Google, and Microsoft, from issuing stablecoins.
- *Federal Licensing Requirements*: Non-bank entities and subsidiaries must follow strict federal or state licensing protocols to issue stablecoins.
- *Consumer Protection*: The act emphasizes consumer protection by maintaining the separation between banking and commerce.
- *Limitations on Yield Offerings*: The act introduces limitations on yield offerings, potentially disrupting DeFi incentive schemes.
Impact on the Market
- *Market Consolidation*: The GENIUS Act's passage could lead to market consolidation, with licensed financial institutions solidifying their positions.
- *Reduced Big Tech Involvement*: The act's restrictions on Big Tech companies may limit their involvement in the stablecoin market.
- *Increased Transparency*: The act aims to increase transparency and enable enforcement actions against non-compliant firms.
Current Status
- *Senate Progress*: The GENIUS Act has advanced in the US Senate, with bipartisan amendments added to address concerns.
- *Opposition*: Some lawmakers, like Senator Josh Hawley, oppose the bill, criticizing its implications for Big Tech and stablecoin regulation ¹ ² ³.