The US has just passed a major cryptocurrency bill, and hardly anyone is talking about it.
This is called the GENIUS Act, and this is the first federal law that truly focuses on stablecoins.
This could completely change how stablecoins like $USDC and $USDT operate in the US.
Under this new law, only licensed banks or fintechs are allowed to issue payment stablecoins. And they need to hold 100% reserves in cash or short-term bonds.
They also need to disclose monthly audit reports, comply with AML/KYC regulations, and prioritize users in the event of bankruptcy.
This provides a significant advantage for #USDC, #Circle, and anyone based in the US who is willing to follow the rules.
At the same time, this could put pressure on offshore options like $USDT, which has always operated in a gray area.
The GENIUS Act also opens up opportunities for major banks and even tech giants to issue their own stablecoins. Think JPMorgan or Apple-backed digital dollar.
From a data perspective, stablecoins are now too big to ignore. Over $150 billion is in circulation. Just $USDT has seen more transaction volume than Visa on some days.
With this law, stablecoins become more reliable, and the path towards institutional adoption becomes clearer.
But not everything is positive.
Smaller cryptocurrency projects may be pushed out. DeFi protocols may struggle to comply. And power may shift towards traditional finance.
