🇺🇸 Analysis of the GENIUS Act – The U.S. Stablecoin Market Stabilization Law

The U.S. Senate has just passed the GENIUS Act, marking the first significant step towards establishing a federal legal framework for stablecoins. The law is currently awaiting approval from the House of Representatives and the President.

🎯 4 Highlights of the GENIUS Act:

1. Only allows stablecoins backed 1:1 by USD/safe instruments like cash, T-bills for payments.

2. Requires strict KYC compliance and AML regulations similar to traditional banks, including for foreign projects.

3. Prohibits directly paying interest to users — eliminates “yield-generating stablecoins,” limiting competition with banks.

4. Only licensed organizations with transparent reserves are permitted to issue in the U.S.

📈 Impact & Expectations:

• USDC, PYUSD, FDUSD stand to benefit significantly – paving the way to become “recognized digital USD.”

• Traditional banks & financial companies may enter the market, issuing legal stablecoins.

• The crypto market is entering a maturation phase, becoming more transparent – easier to attract institutional & corporate funds.

• Investor sentiment is strongly reinforced, as the market is no longer a “gray area,” but is gradually being legitimized.

🚀 Prediction: The GENIUS Act could act as a catalyst propelling the market into a new uptrend cycle, as institutional capital flows into legal projects – especially stablecoins, layer 1 payment support, and on-chain KYC solutions.

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💬 Do you think the GENIUS Act is a stepping stone for crypto to become mainstream, or is it a tightening barrier? Comment to share your perspective!